Visa takes aim at Octopus monopoly
Shoppers will be able to use new smart credit card without PIN or signature

3 November 2005
South China Morning Post

Visa is preparing to launch a new "smart" credit card incorporating a computer chip that will challenge the monopoly held by Octopus cards on cashless payments.

Octopus Cards Limited has issued more than 10 million cards since its launch in 1997 for commuters. The cards can now be used to pay for a wide range of goods and services across the city and the company bills its smart card as the world's most successful.

But Visa claims it has already had success with its new Visa Wave system following launches in Taiwan, Korea and Malaysia this year and believes that by the middle of next year it will be established in Hong Kong.

Visa is rolling out chip technology to better protect credit card users from fraud and allow for retailers to capitalise on loyalty programmes as the chips will store all customer information.

Visa's regional head of chip technology for Asia Pacific, Peter Manners, said that while consumers will not be able to pay for transport with the Visa Wave technology, it will allow users to capitalise on retailers' bonus programmes.

"So if you have a Watson's loyalty card, you will be earning Watson's loyalty bonuses every time you use the card," he said. As well as being a fully fledged credit card, Visa Wave can work in the same way as Octopus cards, with consumers not having to sign or type in a PIN for their transactions.

Mr Manners said the card would take on Octopus in the small transactions market, especially for purchases of around $100 or less at petrol stations and convenience stores, which find processing credit cards "a hassle".

The transactions would be normal Visa credit transactions and users would not be able to "top up" the cards like Octopus cards.

No Octopus spokesman was available for comment yesterday.

A spokesman from the Consumer Council said Visa Wave should benefit shoppers by giving them more choice. But he warned consumers to be wary of additional costs charged by financial institutions to use the new service.

The council spokesman also stressed that consumers should be aware of their potential liability if the card was stolen and big bills were run up by thieves because the Visa Wave does not offer users PIN or signature protection if stolen.

"But here we are talking about small amounts of money, so I don't know how many shops will accept them anyway [for PIN- or signature-free transactions]," he said.

Mr Manners said the cards would have the same customer protection as normal credit cards.

"One advantage of Visa Wave is there is no value stored on it so you do exactly as you do today when you lose it," he said, referring to calling your bank or Visa to cancel a lost or stolen card. "All the same protections you enjoy with your credit card today, you will enjoy with Visa Wave in the future."

"One advantage of Visa Wave is there is no value stored on it so you do exactly as you do today when you lose it," he said, referring to calling your bank or Visa to cancel a lost or stolen card. "All the same protections you enjoy with your credit card today, you will enjoy with Visa Wave in the future."

But a big problem with Visa is that your identity's stored on the card, so if it can be read from a distance, there's the potential of identity theft.

Octopus is better IMO, less hectic if you ever lose it.

Fear of transport congestion stymies Octopus plans to extend rewards scheme
16 November 2005
South China Morning Post

Technical problems could foil attempts by the issuers of Octopus cards to extend their retail rewards scheme to rail and bus commuters.

The Octopus Rewards scheme, which was launched this month and has attracted about 140,000 customers, allows card-holders to earn rewards while making purchases or transactions at HSBC, UA Cinemas, Watsons and Wellcome, regardless of how they pay - cash, credit card, EPS or Octopus card.

The rewards - recorded on Octopus cards separately from the stored value - are in a "loyalty currency" that can be redeemed from participating retail outlets.

Octopus Cards Limited said yesterday it had held talks with transport operators about extending the scheme to their commuters, but admitted it would not be possible in the near future.

"The main problem is how the commuters can store their reward points on the cards without causing a delay in traffic movement, as such an action is going to take longer than the time of passing through the toll gates," a spokesman said.

"It is not a problem at supermarkets, where shoppers are more tolerant about waiting another five to 10 seconds for their rewards to be added to the cards.

"In fact, the government has said it would not encourage the introduction of such loyalty reward schemes on public transport which, they fear, could result in congestion."

Octopus said it was looking at various solutions, including self-service rewards booths near exit toll gates.

The MTR Corporation confirmed talks had been held, but said it had reservations because it already had its own loyalty scheme.

"If we have both schemes operating alongside each other, we are worried that there will be confusion and misunderstanding by our customers. So we will wait and see before deciding if we will join their scheme," a spokesman said.

New World First Bus and Citybus said they were looking into the proposal but did not give details.

Earlier this month, Visa said it planned to launch a new "smart" credit card that would take on Octopus in the small transactions market and allow retailers to capitalise on loyalty programmes as the card's chip would store all customer information.

八達通積分當現金使
鼓勵消費 獎賞擬擴至公共交通
16/11/2005

http://the-sun.orisun.com/channels/news/20051116/img/sn06111608_big.jpg

【本報訊】八達通在港發展多年，現正在市面上流通的八達通卡已多達一千三百萬張，而每日平均現金交易額更已達到九百五十萬元之多。八達通卡有限公司為進一步擴大該卡的應用層面，於本月初起推出「八達通日日賞」積分計畫，讓市民在消費之餘，利用八達通卡儲蓄積分，儲滿購物相等價值分數就可以在購物時當成現金使用。參與計畫的商戶集團可望於明年初由現時的五間，增加至十間，八達通更有意將計畫擴展至公共交通工具上，預期最快於明年首季成事。

「八達通日日賞」是八達通卡獎賞有限公司全新積分系統，凡擁有八達通卡的市民，只要登記成為會員，在貼有「八達通日日賞」標誌的商戶以任何付款方式購物，便可賺取由各參與商戶提供的積分。市民每次消費可獲最少相等於付款金額的百分之零點五作為積分，每消費二百元便可獲得一分，每個積分可於下次購物時當作一元使用。

「八達通日日賞」在本月六日正式推出後首個星期，已派出了逾一百萬份登記表格，截至前日已收到十四萬份申請表格，八達通卡有限公司現正加印表格以應付需求。首階段參與「八達通日日賞」的商戶包括豐銀行、UA戲院、屈臣氏個人護理店及惠康超級市場。由本月六日起的一個月推廣期內，市民只要持八達通到上述商戶消費，均自動賺取積分。

多間食肆明年加入
八達通卡獎賞有限公司董事總經理老大透露，麥當勞快餐店全線分店現正陸續安裝八達通閱讀機，待明年初完成安裝後，亦會加入獎賞計畫。他又表示，多間商戶包括肯德基快餐店、Delifrance等都會於明年起陸續加入計畫，期望參與商戶於明年初增至十間。老大稱，該公司有意將積分獎賞計畫推展至公共交通工具之上，提供服務的公司普遍對計畫感興趣，但技術上仍有不少問題需要雙方面詳細研究，他希望最快可於明年首季落實有關安排。http://the-sun.orisun.com/channels/img/endmarker.gif

LOve Octopus. HK's OWN brand!!!

Octopus cards to streamline school administration
1 December 2005
South China Morning Post

An automatic Octopus card check-in and payment system will be implemented across 90 primary and secondary schools over the next two years.

Under the system, teachers would be saved from labour intensive tasks such as calling attendance and collecting fees because the students' Octopus cards would do the jobs.

It would help schools cut administrative costs, enhance efficiency and help students manage spending, said MTR Corporation chief estate manager Gary Lai Wai-keung.

Tsung Tsin Christian Academy, one of the 20 schools that have installed the card-reading system so far, has invested more than $100,000 on the equipment but principal Joshua Yan Chung-wan said it was a worthy investment. "By ridding the teachers of routine work, we can spare the right people to do the right things," he said.

The school had put in place measures to plug any possible loopholes. "We have prefects and staff monitoring the entrance so students cannot help others to check in with their cards," he said.

Daily attendance would immediately be uploaded onto teachers' computers and teachers would be able to notify parents whose children had not turned up for school.

Students would also use the cards to pay fees, borrow books, buy food and drinks and enrol for extra-curricular activities.

cool

Octopus is penetrating every aspect of HK lifestyle. Visa would never catch up at this rate. Octopus is rapidly moving ahead in innovation and applications.