Themis Qi

Hong Kong's ubiquitous payment card Octopus aims to become a digital force as it steps up its game amid intense competition with e-payment rivals, its new leader says.

The goal, says Tim Ying Tien Chi, is to have a mobile Octopus “on every phone in every pocket.”

Ying takes over today as chief executive of Octopus Cards replacing Agnus Lee, who leaves the e-payment pioneer after a four-year stint that saw usage of the card hit a record high.

Ying's ambitious target means that Octopus will speed up the shift from physical cards to mobile payments, as mainland competitors such as Alibaba's (9988) Alipay and Tencent's (0700) WeChat Pay continue to make inroads into Hong Kong's market.

He believes that Octopus will hold an edge over its rivals in its digital push, as it is quicker and easier to use.

Octopus was launched in 1997 to collect fares for Hong Kong's metro and buses, becoming the world's second contactless electronic card system after the Korean Upass.

Over the years, the card has been widely used in all kinds of transport and retail transactions, even as an access control card in buildings, becoming an essential part of every resident's life.

Today, 98 percent of the city's residents aged 15 to 64 possess an Octopus and the systems boasts a turnover of HK$300 million from 15 million transactions every day, according to the company.

However, the rise and boom of payments via QR codes on mobile phones in the mainland has changed the game.

Major mainland players like Alipay and WeChat Pay have been tapping into Hong Kong's market since 2017, while the three-year Covid pandemic has also accelerated the trend towards digital payments in the city.

AlipayHK says it has more than 3.3 million active users and 1.5 million consumption voucher registrants, while WeChat Pay HK has over 5 million active users.

Besides these three, Hong Kong now has at least 10 mobile payment products, including PayMe, Faster Payment System, Tap & Go, Apple Pay and UnionPay.

Ying will drawing on his banking and payment expertise that spans more than two decades to help Octopus compete in the digital world.

Before joining Octopus, Ying was the general manager of digital experience at Cathay Pacific Airways (0293). He also had management roles at The Hongkong and Shanghai Banking Corporation, and his last position there was chief product officer for PayMe, the bank's digital wallet.

He also co-founded GOW Exchange, a licensed crypto and fiat trading platform in the Philippines.

Ying bills himself as a “digital payment guy” and believes the digitalization of Octopus cards is inevitable, as younger generations have not only “grown digital” but are being “born digital” with a strong reliance on mobile devices.

And that's the direction that Octopus is headed, as the sun sets on physical cards, Ying says, pointing out that virtual card users spend, on average, 60 percent more than physical card holders in a month.

The transition to the virtual world is well under way, with Octopus on Apple Pay, iWatch and Huawei Pay allowing owners to tap their smartphones on a reader for spending, just like a physical card.

To attract youngsters, Octopus also provides card art on the iPhone and iWatch, allowing users to customize their mobile Octopus with themes including Hello Kitty and the new colors of the iPhone 15.

Mobile users are also being targeted with special campaigns, including a zero-foreign exchange settlement fee via Octopus-Union QR-code for transactions in the mainland and overseas until December 31.

In addition to its large number of users, Ying says the 26-year-old payment system's advantages include a better user experience.

For example, MTR passengers using their mobile Octopus only need to tap their phones on the reader at MTR stations to cross the gate, while users of QR-code payment systems have to unlock the phone, find the app and open the code -- a longer process that could irritate impatient commuters behind them.

"We are convenient, fast and easy to use,” he says.

Ying says he will also work to change the mindset of people who prefer cash as there are some taxi drivers and smaller merchants who will only deal in banknotes due to concerns over privacy, transaction fees and taxes.

He also promises that Octopus will not raise its fees, to support small businesses in the city.

Born in Taiwan, Ying turns to a popular yet seemingly absurd Cantonese phrase which translates as “Don't rush, but be quick” -- which basically means one has not only to be meticulous but also fast -- to sum up the provider's strong traits.

The idiom perfectly reflects the spirit of Hongkongers who strive for efficiency along with speed, he says, “and this is exactly what Octopus can offer its users.”

Tim Ying believes the digitalization of Octopus cards is inevitable. SING TAO

Octopus wants to be on every phone, says new CEO