This paper examines the concept of eCurrency and how it has been used globally, and then highlights how this could be applied in Hong Kong. The situation in Hong Kong was assessed, and it is believed that Octopus is able to take advantage of its strong brand name and wide use taking its business online to an extended business model, termed eOctopus.
The eOctopus model suggests that Octopus becomes an intermediary in online transactions where the users will have the option to set up an online Octopus account on the web. Money will be deducted for online and offline transactions, and money can be added at current Octopus terminals or via Internet banking. It will also allow users to shop and pay bills online.
Given the development concerning the introduction of a smartcard (including an eCertificate function) to replace the existing Hong Kong ID card, synergies are expected to exist if Octopus were to work together with the government on this issue. Since every resident in a Hong Kong is required to possess an ID card, Octopus would thus gain in trust and overcome security issues, as expressed by respondents. The Hong Kong government could benefit from this arrangement, since Octopus′ technology and know-how regarding smartcards is advanced. If the eOctopus model is implemented in Hong Kong, it could then serve as a global role-model to the rest of the world, making eOctopus a successful eCurrency for online transactions possibly beyond the boundaries of HK.
Inhaltsverzeichnis (Table of Contents)
- EXECUTIVE SUMMARY
- TABLE OF CONTENTS
- 1 INTRODUCTION.
- 2 BACKGROUND INFORMATION.
- INTERNATIONAL E-CURRENCIES
- E-MONEY DIVISIONS.
- Credit Cards.
- Electronic Cash.
- Smart Cards
- Micropayment....
- INTERNATIONAL OPERATORS
- PayPal...
- Moneybookers
- Benefits of Moneybookers.....
- Mondex
- How Mondex Works
- Multi-Currency.
- Security.
- Risk Management..\li>
- 2.2 OCTOPUS......
- OCTOPUS TECHNOLOGY
- BACKGROUND AND HISTORY
- BIRTH OF INNOVATIVE IDEAS
- FEATURES AND BENEFITS.
- Operational Benefits .
- Financial Benefits
- Business Benefits...
- 3 METHODOLOGY
- GENERAL APPROACH OF REPORT
- SECONDARY RESEARCH.....……………………..
- SURVEY DESIGN AND DISTRIBUTION.
- COMPANY CONTACTS AND INTERVIEWS.
- 4 FINDINGS..
- SWOT ANALYSIS
- STRENGTHS
- Market Leader in Smartcard Transactions..
- Focus on a Coin Free Strategy.
- Technical Leadership..
- Strategic Partnerships.
- Customer Relationship Management.
- Other Services.
- WEAKNESSES.
- Limited Technology
- Switching Cost is Low.
- Limited Venue to Add Cash
- Limited Usage of Octopus.
- Not Protected by Password..
- OPPORTUNITIES
- Cross-selling Opportunities.
- Government to Introduce Smartcard into new HKID Card.
- THREATS
- The Security and Confidence of Users.
- Competition ..
- THE NEW 'EOCTOPUS'.
- EOCTOPUS: HOW WILL IT WORK?.
- PROFESSIONAL FEEDBACK ON THE NEW EOCTOPUS MODEL
- IS IT TECHNICALLY FEASIBLE TO UPDATE THE ONLINE OCTOPUS ACCOUNT AUTOMATICALLY WHENEVER ONE ADDS OR DEDUCTS MONEY TO/FROM OCTOPUS AT THE EXISTING TERMINALS? IS IT TECHNICALLY FEASIBLE TO TRANSFER MONEY FROM AN INTERNET BANKING ACCOUNT TO THE EOCTOPUS ACCOUNT?
- WOULD IT BE TECHNICALLY FEASIBLE TO UPDATE OCTOPUS AUTOMATICALLY TO REFLECT ANY AMOUNT CHANGES IN THE ONLINE OCTOPUS ACCOUNT?
- COULD EOCTOPUS BE PROFITABLE?.
- WHAT SHOULD BE THE BEST-SUITED OCTOPUS' REGISTERED ONLINE SHOPS OR INSTITUTIONS UNDER OUR ONLINE BUSINESS MODEL?..
- WILL EOCTOPUS FULFIL RELEVANT REGULATIONS?
- SURVEY FINDINGS
- DEMOGRAPHIC FINDINGS
- Implications to Octopus…......
- ONLINE SHOPPING BEHAVIOUR FINDINGS
- Experience of Online Transactions.
- Reasons for No Transactions Online.
- Frequency of Online Transactions.
- Online Transactions Amount.
- Implications to Octopus..
- EXISTING ONLINE TRANSACTIONS MODE
- Implications to Octopus..
- OCTOPUS CARDS......
- Implications to Octopus..
- EXTENDED ONLINE USE OF OCTOPUS
- Implications to Octopus......
- OVERALL SUGGESTIONS TO OCTOPUS.
- 5 FUTURE OUTLOOK.
- NEW HONG KONG ID CARD, ECERTIFICATES AND EOCTOPUS.
- THE NEW SMART CARD AND EOCTOPUS.
- 6 CONCLUSION AND RECOMMENDATIONS..
- BIBLIOGRAPHY
- The feasibility of implementing an eOctopus model in Hong Kong.
- The potential advantages and disadvantages of extending Octopus into the online realm.
- The integration of eOctopus with the existing Octopus system and its infrastructure.
- The impact of eOctopus on Hong Kong's e-commerce landscape and its potential global role.
- The potential synergy between eOctopus and the introduction of a new smartcard-based Hong Kong ID card.
- Introduction: This chapter introduces the report and outlines its objectives and scope. It provides a brief overview of the concept of e-currencies and their relevance to Hong Kong.
- Background Information: This chapter delves into the global landscape of e-currencies, exploring various e-money divisions, including credit cards, electronic cash, smart cards, and micropayments. It also examines international e-currency operators such as PayPal, Moneybookers, and Mondex, highlighting their benefits, functionalities, and challenges.
- Octopus: This chapter focuses on the Octopus system, outlining its technology, history, and key features. It discusses the operational, financial, and business benefits of the current system, laying the groundwork for understanding its potential expansion into the online realm.
- Methodology: This chapter describes the research methods used to conduct this feasibility study, including secondary research, survey design and distribution, and company contacts and interviews.
- Findings: This chapter presents the results of the research, including a SWOT analysis of the Octopus system, an exploration of the proposed eOctopus model, and feedback from professionals and users. It also examines the findings of a survey conducted among HKUST students regarding their online shopping behaviors and attitudes towards eOctopus.
- Future Outlook: This chapter examines the potential impact of the upcoming introduction of a new smartcard-based Hong Kong ID card on the eOctopus model and the potential for collaboration between Octopus and the government. It also discusses the broader implications of eOctopus for Hong Kong's e-commerce landscape and its potential global role.
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This report aims to explore the feasibility of extending the Octopus system, a widely-used smartcard payment system in Hong Kong, into the online domain, creating an e-commerce platform called eOctopus. The report examines the global landscape of e-currencies, analyzes the current strengths and weaknesses of the Octopus system, and investigates the potential impact of such a transition on the local market and beyond.
Zusammenfassung der Kapitel (Chapter Summaries)
Schlüsselwörter (Keywords)
This report focuses on the feasibility of implementing an e-currency system in Hong Kong, utilizing the existing Octopus infrastructure and brand recognition. Key concepts include e-currency, smartcard technology, online payment systems, e-commerce, and micropayments. The report also examines the potential impact of the upcoming smartcard-based Hong Kong ID card on the eOctopus model and the potential for collaboration between Octopus and the government.
- Quote paper
- Ben Beiske (Author), Leslie Lee (Author), Iris Yim (Author), David Yu (Author), 2003, eOctopus in Hong Kong – A feasibility study, Munich, GRIN Verlag, https://www.grin.com/document/15457
