China Unionpay is working with Hongkong’s Octopus Cards Limited (OCL) on the issuance of a prepaid card with Octopus and CUP functionality as well as enhancing the acceptance of Octopus in China.

OCL and CUP have signed a Memorandum of Understanding in July setting out a framework for cooperation. The two companies will work together to study the feasibility of prepaid card issuance in Hong Kong, including the exchange of information and experience in such areas as technical support and business and operation models. CUP, in compliance with China’s regulatory policy, will also provide support for Octopus to expand the acceptance of Octopus in mainland China.

Launched in 1997, Hong Kong’s Octopus is the world’s leading and most extensive smartcard payment system, with over 2,000 service providers across different businesses including public transport, parking, retail, vending and kiosks, schools and leisure facilities, and access control for residential and commercial buildings, with over 50,000 Octopus readers deployed in the market. Today, more than 17 million Octopus cards and products are in circulation, and the system handles over 10 million transactions a day, with transaction value exceeding HK$85 million.