Diffusion of the ‘octopus’ Smart Card E-Payment System: A Business and Technology Alignment Perspective

The Octopus smart card is the most popular smart card in the Hong Kong Special Administrative Region (HKSAR), China. This case study traces the strategic moves of Octopus Cards Limited (OCL) in building an e-payment system and boosting its growth from limited deployment for transport payment in the initial stages to payments for various alternative forms of business transactions such as parking meters, supermarkets, restaurants, printing services in libraries, etc. The case highlights the importance of business and technology strategies and their alignment in rapid diffusion of the Octopus smart card and its continued dominance of e-payment business in Hong Kong.