Our Technology
The Octopus system represents a major breakthrough in smart card payment technology, and it has undergone many enhancements since its launch. One of the most significant achievements has been the integration of the Octopus Clearing House System with the systems of a wide variety of organisations and merchants throughout Hong Kong. Different parts of the system make use of different high-end technologies.
The Octopus Clearing House System uses a complex set of business rules to validate each transaction prior to authorising settlement amounts. A standard set of reports is then sent to each participating service provider on a daily basis, with the aim to settle payments within 24 hours or on the next business day.
Octopus cards and products have a built-in IC chip that communicates with different fare or payment processors through the use of a reader/writer.
The reader/writer has a processing board and an antenna that use inductive radio frequency to transmit signals to the Octopus cards and products. With an operating range between 30mm and 100mm, data communications are established when a security handshake is verified. Data is sent back to the Octopus central computer each day for clearing and settlement.