Letters | Hong Kong and Shenzhen: a tale of 2 cashless payment systems

Readers discuss the need to better integrate the payment systems of the two Chinese cities, and foreigners’ worries about travelling to China

Reading Time:3 minutes

Customers use their mobile phones to make a payment at a ParkNShop store in Shenzhen in August 2017. Photo: May Tse

Published: 11:30am, 18 Mar 2024Updated: 2:56pm, 18 Mar 2024

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The evolution of cashless payment systems in Shenzhen and Hong Kong reflects the divergent paths these cities have taken towards modernisation. While both cities are renowned for their technological advancements, their approaches to cashless payment systems differ significantly.

Shenzhen, sometimes hailed as China’s Silicon Valley, has been at the forefront of innovation in cashless payment systems. The city’s rapid development as a global technology hub has paved the way for the widespread adoption of digital payment solutions. These include mobile payment platforms like WeChat Pay and Alipay, contactless card systems and even palmprint recognition machines.

In contrast, in Hong Kong, despite its status as a leading international financial centre, cashless payment is often limited to the Octopus card system. Although Octopus has introduced mobile applications, they are not as widely used as in Shenzhen.

Many mobile phones lack near field communication (NFC) capabilities, making them incompatible with the Octopus app. Additionally, while public transport buses in Hong Kong have machines that accept bank cards, Alipay and WeChat Pay, the experience is not always seamless, leaving the Octopus card as the primary cashless payment option for commuters.

This reliance on the Octopus card represents a barrier to the widespread adoption of cashless payment in Hong Kong, especially compared to the ubiquitous nature of WeChat Pay and Alipay in Shenzhen. Hong Kong’s regulatory environment and cultural preferences have led to a slower pace of adoption and limited options available to consumers.