Octopus Holdings Presentation page 1

Large Scale NFC: Octopus Hong Kong

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Introduction

• Over 15 years of uninterrupted service

• Issued 3 million cards in first 3 months

• Active cards in circulation > 22 million

• Coverage – 95% of HK population

• Daily transactions over 12 million / HK$100 million

(> 120 transactions / second)

Mission : Make everyday life easier

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The Key Success Factors

• Fast ,reliable ,secure and evolving technology

• Simple to use by both Cardholder and Front line staff

• Supporting ecosystem and operations support

• Comprehensive policies and processes

• Killer application (transport)-economies of scale mean

lowest cost payment method

• No Costs to the cardholder + Discounts and incentives

• Balanced regulatory environment

• Evolving and expanding merchant base and new

applications

• Now part of everyday life as the Y-generation have

been using Octopus all their formative years

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The Key Success Factors

Usability Cost

Convenience

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Transport Experience -

One Common Payment

Method for all services

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Metro, Rail, Light Rail, Bus, Ferry, Coach,

Tram, Peak Tram, Minibus, Taxi

Car Parks,

Parking Meters

Application - Transport

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Non-transport Experience -

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Application - Non-transport

Transport Access

control

Apartments /

Offices Exhibitions

Obtained

Deposit-taking Company

Authorisation from HKMA

in 2000

Octopus

Retail

Schools

Self-service Business

Supermarkets Fast Food

Convenience stores Cake shops

Vending/Kiosks

Photocopiers Cinemas

Racecourse Entrances

Game Booths Sporting Venues

Clothing

Leisure Facilities

Telecom

Wet

Market

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Year 2000: Deposit-taking Company Banking License

Supermarkets

Convenience Stores

Fast food Chains

Cake shops

Café

Chinese Wet Markets

Personal Care Shops

Apparel Chains

Cinema Counters

Application - Retail

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Access Control, Recreational Facilities, Electronic Flag Selling

Self-service: Telecom Payment, Vending Machine, Self-Ordering,

Cinema Ticketing, Electric Car Charging

A Multi-Purpose Smart Card

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Diversified lifestyle products

Octopus Phone Sticker

Mini Octopus

Tourist Octopus Octopus Ornaments

Limited Edition

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Supporting Ecosystem

How to serve customers

better

Launched in 1999

Any Octopus card or product

Over 20 financial institutions

Auto add HK$250/HK$500 when card is zero or negative

(once a day)

Over 63,000 readers reload the card automatically when

needed

Credit card – bonus points, interest-free repayment period

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Automatic Add Value Service (AAVS)

Octopus retail outlets &

service counters at stations

Add Value Machines at

MTR stations

Cash Add Aalue

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Transaction enquiry service

• On every purchase Transaction amount & remaining value

available on screen or receipt

• Check last 10 transactions 377 MTR Octopus Enquiry Machines

PCCW eye with a card reader

Octopus PC Reader Service

“OctoCheck” free NFC Android Mobile

Application

• Print last 10 transactions All MTR CS Centres

Over 950 7-Eleven stores

Over 280 Circle K outlets

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Future Direction

Enhancing Service Delivery

Enhancing Service Delivery

Ubiquitous usage

Mobile integration

Networked Accounts

Online payment

© Octopus International Projects Ltd

Making everyday life easier, affordable and secure -

how

How can Mobile and NFC enhance service

• OTA reload of eCash and products

• Greater transaction information

• Travel enquiry and best value routing

• Over the air offers targeted at the recipient

profile and location

• Interaction with virtual shops and malls

• P2P payments

• Multiple choices of payment products in

wallet

• Instant update and feedback on service

• Demand based travel opportunities

© Octopus International Projects Ltd

Octopus Making Everyday Life Easier

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© 2012 Octopus Holdings Limited. All rights reserved. Except with the prior written permission of Octopus Holdings Limited, any copying, reproduction,

modification, distribution, republication, hiring, lending, public performance, or broadcasting in any form or by any means, or stored in a data base or

retrieval system is strictly prohibited.

Thank you