Cash and Octopus Cards in Hong Kong & How They Work Jointly!

Hong Kong is known for being technologically advanced where use of digital payment methods is undoubtably rising. However, Hong Kong and its population demonstrate how cash and Octopus cards (a digital payment method) have worked harmoniously alongside each other, instead of either being phased out in favour of the other.

In today’s blog piece, we are discussing this unique consumer phenomenon, and how use of cash is still strong among the different demographics of the City’s 7.4 million population.

Which Businesses Accept Cash in Hong Kong?

Businesses of all sizes accept cash payments, but public transport providers take the crown for acceptance of cash payments in Hong Kong. Use of AliPay, WeChat and other digital payment methods is rising, but research shows that cash use is still strong.

Are Payment Methods Changing in Hong Kong?

With the advent of digitalisation, other means of payment have been introduced, namely WeChat and AliPay, but today we take a look at the Octopus card, which was first launched in 1997.

Octopus cards are top-up smart cards that can be used for various transactions such as on public transport, when using vending machines, supermarkets, restaurants, shopping malls, and nearly all private carparks require an Octopus card to enter and pay. Hong Kong's population is so enthusiastic about the convenience of this card that 98% of Hong Kongers own one! So, are payment methods changing in Hong Kong? Yes! Does that shift in payment methods also include cash? Yes!

How Do Cash & Octopus Cards Work Together?

Octopus cards can be topped up online or via the app, as well as with cash at customer service outlets and shops such as 7-Eleven. The Octopus card demonstrates how Hong Kong's undying love for cash has been married with the convenience of digital payment methods – a fantastic example, we believe, of how digital payment methods can be introduced without leaving cash-preferring demographics behind.

Advantages of Topping Up Octopus Cards With Cash

Using cash and Octopus Cards together by topping up your digital account offers several advantages to the cardholder. Personal budgeting becomes so much easier as you have control over how much money goes on the card and what kind of spending the card is used for. In addition, the Octopus Card app tracks spending so that the cardholder can make informed spending decisions – a strong benefit of using cash.

With budgeting becoming increasingly important in today’s economic climate, many people’s goal is to save money. Paying with cash is by default free of charge and there are no hidden fees. Charging one's Octopus Card with cash allows users to control spending as well as saving money, as there are no fees when doing so.

Another advantage of using cash to top up your Octopus card is that it is secure and anonymous - a plus when cybercrime is on the rise! Octopus cards are secured by encryption too, which helps consumers protect their own data, thus doubling down on risk of fraud.

A Hong Kong Monetary Authority survey found that over 80 percent of participants used an Octopus card in the last month. Cash is still a favoured payment method, with 65 percent of respondents saying they prefer cash. This is not just a matter of generation either, with 71 percent of 18-24 year olds saying they pay with cash on a daily basis.

In conclusion, both cash and Octopus cards have their advantages, especially when used in combination. While cash is widely accepted and preferred by some in Hong Kong, the Octopus card offers convenience. It is interesting to see how digital payment methods are evolving – particularly those that involve cash!