A customer uses Octopus card to buy products at a store in Hong Kong, south China, June 17, 2017. (Xinhua/Wang Xi)

 
Amid a surge in Hong Kong residents' northbound travel, AlipayHK, which can be used both in Hong Kong and the Chinese mainland, is gaining in popularity. In response to the challenge, Octopus, a Hong Kong based e-payment provider, launched several promotional policies on Tuesday to retain local spending.

Starting from August 1, Octopus will waive the transfer fees for the first HK$10,000 of monthly transactions for all merchants using the commercial version of the Octopus app. According to a document sent by Octopus to the Global Times on Tuesday, over 80 percent of Octopus commercial users transact an amount equal to or less than this figure each month. 

This move comes amid a surge in Hong Kong residents traveling north for shopping and tourism. The convenience of using AlipayHK in both Hong Kong and the mainland is seen as a direct threat to Octopus' market share.

"From a personal standpoint, the convenience and application scenarios of AlipayHK offer several advantages, especially for those who frequently travel between Hong Kong and the mainland," Liang Haiming, chairman of the China Silk Road iValley Research Institute, told the Global Times on Tuesday.

While Octopus remains a vital payment tool, particularly in transportation, the ease of using AlipayHK for shopping in cities like Shenzhen is appealing to many. “I still use Octopus, but as it is more convenient for shopping in Shenzhen and other mainland cities, I've gotten used to using AlipayHK. Now, I even prefer it for transactions in Hong Kong," a Hong Kong resident surnamed Zhou told the Global Times on Tuesday.

AlipayHK, owned by Ant Group, an affiliate of Chinese e-commerce giant Alibaba, is gaining traction in Hong Kong and encouraging people to use the app for spending in the mainland. According to AlipayHK's official website, the app can now be used at merchants supporting Alipay in the Chinese mainland and for metro and bus rides in cities such as Shenzhen, Guangzhou, and Foshan. The platform currently boasts about 4 million active users, more than half of Hong Kong’s population.
 
As more and more Hong Kong people adopt payment platforms operable in both Hong Kong and the mainland, these convenient payment tools are poised to promote economic interactions and integration, thereby stimulating consumer spending, Liang said.

As this trend continues, Hong Kong's payment providers and merchants are being urged to innovate and collaborate to enhance their competitiveness and seize new growth opportunities, Liang added.

According to AlipayHK, the platform currently serves over 100,000 merchants, while Octopus claims nearly 190,000 payment points across Hong Kong.

With the Northbound Travel for Hong Kong Vehicles program implemented on July 1, 2023, more and more Hong Kong people are choosing to shop and travel in the mainland. According to the Hong Kong-Zhuhai-Macao Bridge border control, as of Sunday, the number of Hong Kong single-plate cars crossing the bridge exceeded 1 million.