Hong Kong taxis with Octopus fare machines to accept payment through UnionPay, Alipay from January 25
- Octopus says it will open up its payment networks for the first time in 26 years to UnionPay, Alipay and AlipayHK
- About half of active taxi drivers in city use Octopus app and fare machine to receive payments, according to company
Hong Kong taxis with Octopus fare machines linked to mobile phones with an updated app will start accepting digital payments through two mainland Chinese QR code wallets, with the aim of providing convenience to residents and tourists from across the border.
Octopus Cards Limited on Thursday said it would open up its payment networks for the first time in 26 years to UnionPay, Alipay and AlipayHK starting from January 25 for the taxi industry, which had long relied on cash transactions.
“We hope to be able to address a major pain point for both drivers and riders alike,” said CEO Tim Ying Tien-chi, who joined the company in August.
UnionPay is a state-owned firm providing bank card services on the mainland. Alipay is a payment app owned by Ant Group, an affiliate of Alibaba Group Holding, which owns the South China Morning Post.
Asked why other credit cards and payment service providers would not be accepted, Octopus’ sales and marketing director, Rita Li Yuk-yi, said mainland visitors made up 80 per cent of all arrivals after Covid-related travel restrictions were lifted, prompting the company to prioritise tourists from across the border in its expansion plan.
“We hope to collaborate with other payment platforms to break the dominance of cash. We remain open and welcoming towards the participation of other platforms,” she said.
About half, or 21,000, of 40,000 active taxi drivers in the city were using Octopus’ app and fare machines to receive fares, according to the company, with the total transaction value reaching HK$1 billion (US$127 million) since 2019.
