Stored-value cards problem

One of the things about Hong Kong that seems to impress my mainland friends most is the Octopus stored-value card, which allows the holder to conveniently move around the city on various modes of public transport, other than taxis.

For years, Octopus has had a virtual monopoly on Hong Kong's stored-value card business. It was perhaps for this reason that the real potential of stored-value card has never been fully exploited in Hong Kong. Popular as it is, Octopus' reach in the retail sector is still limited to convenience stores and a few shopping outlets.

The monopoly issue was brought to the forefront in recent months when holders complained about the failure to add value to their Octopus cards through the Electronic Payment System. Such complaints, which indicated Hong Kong people's diminishing tolerance toward the limitations of monopolies, moved the city's monetary chief Joseph Yam to write: "It is becoming increasingly clear that whether there is a need for separation of the management of the platform and the issue of stored-value cards is an important issue to be considered and debated."