Ng Yuen Lam, Stephanie 200565297 (ECEN2802Q)“Doot” through life with Octopus

With a growth rate of 0.9%, Hong Kong recently has had a growing population of over 6.9 million people (Census and Statistics Department 2006). To accommodate the rapid pace of life and need for expediency, the “Octopus” (see figure 1) is now considered a daily necessity. This name is familiar amongst locals and is in fact a rechargeable card used for contact-less electronic payments. The Octopus system was first launched in

September 1997 with currently over 14 million cards in circulation (Octopus Holdings Limited 2005). Initially, use of the Octopus was introduced primarily only to public transport such as the mass transit railway (MTR). However over the past decade, usage has swiftly spread throughout the city ranging from vending machines to fast food chains providing a “simple way” (Octopus Cards Limited 2005) to pay. Dependent on the highly popular radio frequency identification (RFID) technology that is also used in the EZ-Link card in Singapore, the Octopus is undeniably an ingenious idea.

The principle of RFID

Figure 2: The RFID system. The reader sends out signals via radio waves which the Octopus card reflects when in proximity. This reflected data can be collected at the antenna and either stored in the portable reader for uploading at a later time or directly sent to the host computer for data processing.

Figure 1: The Octopus Card. This is a personalised card e.g.) student card. The combination of colours used are from the colour scheme for the children (red), adult (yellow) and elderly (green) cards.

RFID represents technology using radio waves to automatically identify people or objects (RFID Journals 2007). In the case of Octopus, RFID in the card recognizes a designated reader installed such as those on buses. To be precise, the most frequently used method of identification is through storage of a serial number capable of identifying information (EPIC 2007). The Octopus card is an RFID tag storing data in a microchip attached to an antenna. For Octopus, the chip is provided by Sony and referred to as FeliCa using the Manchester bit coding scheme to minimize interference ensuring reading efficiency (Sony Corporation 2007). Despite the chip’s small storage size of 2kB, it is sufficient in performing the Octopus’ function mainly involving payment (Sieberg 2006). Very importantly, it is the antenna that allows the chip to transmit signals and thus information to the reader (Sony Corporation 2007) (see figure 2). A field is created by the reader and power is extracted from it to facilitate the chip’s circuits. The reader communicates with the tag through radio wave transmission with reflected signals from the tag then converted into digital instructions for the computerized reader (EPIC 2007).

Octopus ApplicationsOctopus readers installed at various places demonstrate their widespread applications in Hong Kong. The most significant use of the Octopus is in payment with the main advantage of convenience through a “touch and go” system. The card only needs to be placed in close proximity with the reader (see figure 3) to allow recognition confirmed by the sound “doot”. The system is easy to use with the chip able to be read even through materials such as leather, reducing the hassle of having to take it out of one’s belongings (see figure 3). The ease of usage makes it suitable for all ages as reflected in recent developments including Octopus watches (see figure 4), phone covers and key chains, each catering to the users’ preference (Octopus Cards Limited 2005). This proves that the Octopus’ use of RFID technology can be expanded to many areas owing to its small size.

Using Octopus, consumers are able to pay for a variety of utilities. Transportation fares for example on the MTR can be paid through a simple tap of the card on the reader. The Octopus can also be used for making purchases in major supermarkets and convenience stores including PARK ‘n’ SHOP, 7-Eleven and Watson’s. In the last few years, Octopus payments have been introduced to fast food chains and eateries such as Maxim’s Express, McDonalds and Starbucks Coffee. To this date, over 10 million transactions using Octopus have been estimated (Octopus Cards Limited 2006). In response, usage of coins and even notes can be replaced by the Octopus which can store up to HK$1000. Recharging can be

Figure 3: The Octopus card is placed on or within close range to the reader. It can be detected even through small personal items such as

Figure 4: An Octopus watch. This accessory functions like an Octopus card with a built in RFID microchip acting as a tag for the reader.

Figure 5a, b, c (right): a) The add-value machine. b) To add value to the card, insert the card into the machine. c) Select “add value” action and choose top up mode either by case or an electronic payment system (EPS) card.

done conveniently at add-value machines located in MTR stations (see figure 5), at dealers accepting Octopus transactions or even from a designated bank account known as the automatic add value service (AAVS) (Octopus Cards Limited 2005). Not only does the card allow payment simplicity, it is also able to store transaction records and indicate remaining values (see figure 6).

Other usesAside from payment, Octopus can also be used in other ways. Through registration with an assigned management, access control in residential areas and offices can be enforced (Octopus Cards Limited 2007). This allows only authorized residents or personnel into a given area acting as an additional security measure. Furthermore, school campuses can also use the Octopus as a means of keeping track of student attendance, administrative work and purchases at school canteens and kiosks (Octopus Cards Limited 2007). This system is helpful in ensuring that students do not bring too much cash to school and at the same time allowing parents to monitor their expenditure.

The various applications demonstrate the use of RFID technology being able to fully expand Octopus’ ability ranging from simple payment to a more complex level of access control and management. Evidently, this simple looking piece of plastic plays an important role, enhancing the efficiency of the otherwise troublesome payment process and is an invaluable asset.

b)

Figure 6a, b (left); a) Balance checking at MTR entry points. b) Balance and transaction checking at electronic kiosks in MTR stations.

b)

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a) b)

References:

Census and Statistics Department 2006. Hong Kong Statistics. The Government of the Hong Kong Special Administrative Region. Available on http://www.censtatd.gov.hk/hong_kong_statisitcs/statistics_by_subject/index.jsp. Accessed 1st March 2007.

EZ-Link 2007. The Card: Products. Available on http://www.ezlink.com.sg/theCard.htm. Accessed 3rd March 2007.

Octopus Cards Limited 2007. Octopus. Available on http://www.octopuscards.com/consumer/en/index.jsp. Accessed 10th February 2007.

RFID Journal 2007. Frequently Asked Questions. Available on http://www.rfidjournal.com/faq. Accessed 10th February 2007.

Sieberg D. 23rd October 2006. Is RFID tracking you? CNN. Available on http://www.cnn.com/2006/TECH/07/10/rfid/index.html. Accessed 3rd March 2007.

Sony Electronics Global 2007. The FeliCa System. Available on http://www.sony.net/Products/felica/index.html. Accessed 13th February 2007.