A business slump in Hong Kong has led some restaurants to stop using Octopus e-payments in an effort to reduce costs. The decision comes as more residents are crossing the border to spend money on cheaper goods and services in mainland Chinese cities. Some merchants had initially adopted Octopus card readers during the Covid-19 pandemic to take advantage of the government's issuance of e-vouchers to boost public spending. However, with businesses now facing a tougher market, they are opting out of using Octopus to cut costs. The practical inconvenience of the Octopus e-payment system is cited as a reason for the shift to other payment methods like AlipayHK and WeChat Pay. Octopus is expected to announce measures to support small and medium-sized enterprises and micro businesses. Hong Kong has at least 20 e-payment platforms available, with Octopus, AlipayHK, and WeChat Pay being among the most popular [b3d628fc].
This development adds to the challenges faced by Hong Kong's restaurant industry, which has already been struggling due to declining profits caused by budget-conscious Hongkongers choosing to dine in Shenzhen, just across the border. The shift in spending patterns and travel preferences has resulted in the closure of many shops and restaurants in Hong Kong, with retail sales in April and May showing significant declines. The impact is particularly felt in areas near the border, such as Sheung Shui, where businesses have seen a decrease in customers and income. Restaurant owners are now forced to adapt their business models and find new ways to attract customers [cdc5b4bf].