Coin Free and Small amount strategy
Octopus strategic advantage has been its focus on being a coin-free payment system with small amount. It offers users an easy and convenient way to travel and shop around Hong Kong by having a built-in microchip it the card, which stores money electronically and has other applications. User can put their octopus cards over an Octopus reader, which will automatically deduct the correct amount from the card. The user would no longer need to carry coins. The Octopus card can be widely used in various organizations, such as public transport, parking, retail, government recreational facilities.
Octopus has strategic partnerships with Transport companies, fast food …show more content…
There are reports claims that taxi drivers overcharged the tourists, who have been taken out of their way to inflate the fare or passengers claimed to have been short-changed after the taxi driver rounded up the metered fare of e.g HK$99.5 to HK$100 which is quite a common sense in Hong Kong, have led to prosecution or lawsuit .
According to Hong Kong Monthly Digest of Statistics – August 2013, there are around 18,000 licensed taxi including New Territories, Urban (Kowloon and Hong Kong Island) and Lantau area which is quite a big potential market for Octopus to explore. Using Octopus card might be a excellent solution for passengers to pay taxi fare for easing the tension remains in the taxi industry.
Fierce competition from banks and telecommunication operators with NFC-ready mobile payment service as electronic payment platform
Various banks have launched services using Near-Field Communication (NFC) technology to allow holders of credit cards to pay for transactions with smartphones linked with the card accounts. Users pay by their NFC-ready smartphone on a card reader, very similar to using Octopus cards.
For example, Hang Seng Bank has launched an NFC mobile payment service in partnership with mobile network operator PCCW mobile and Mastercard. Its currently available at around 1,000 outlets equipped with MasterCard PayPass terminals across Hong Kong.
To use the service, Hang Seng Mastercard cardholders can visit PCCW