HONG KONG FRENCH SYMPOSIUM Smart Card EMV

HONG KONG FRENCH SYMPOSIUM Smart Card – EMV – Security – Internet 10 June 2002 Presentation by Mr. Alan Siu Deputy Secretary for Information Technology and Broadcasting Government of the Hong Kong Special Administrative Region 1

Hong Kong/France Collaboration q HK signed Mo. U on ICT collaboration with France q HK – an advanced digital city for French ICT companies to explore business opportunities q HK – a strategic partner for French ICT companies to explore Mainland market after China’s accession to WTO 2

Clear Government strategy q Digital 21 IT Strategy positioning HK as a leading digital city – Enhancing our e-business environment – Building E-government – Developing our IT workforce – Building a digitally inclusive society – Exploiting enabling technologies 3

Legal and E-commerce infrastructure q Electronic Transactions Ordinance to provide legal framework for electronic transactions q Public key infrastructure established q Four recognised certification authorities 4

Well established IT and Telecom infrastructure q q Over 250 ISPs Internet services among cheapest in the world at less than - US $0. 2 per hour for dial-up - US $26 per month for unlimited broadband usage q Wide choice in speed and connectivity (1. 5 Mbps to 10 Mbps) q q q External connectivity: 900 Gbps 85% of our population have mobile phones One of the first in Asia to introduce GPRS service 5

Community receptiveness to IT and new innovations q 60% PC penetration rate q 50% Internet penetration rate, of which 40% used broadband services q Second in the world in average browsing time for household Internet users (12 hours 12 minutes per month) q 86% of people aged 15 or above have used e-business services q Number of online banking users increased to over 600, 000 6

Strong service culture and dynamic business sector q Strong service culture q Dynamic business sector responsive to new service needs q E-business applications in various industry sectors, - Internet banking and wireless stock trading - e-catalogue and e-trading - online booking 7

E-government developments q Clear E-government strategy q Flagship projects: - Electronic Service Delivery Scheme - Electronic Tendering System q 90% of public services have e-option by 2003 8

Good foundation for E-commerce Application Development q Smart card q Electronic payment Internet payment through online banking services 9

Octopus cards (1) q Started in 1997 for fare payment in public transport q Multi-application micro-payment system, utilising contactless smart cards q Over 8. 5 million cards in circulation q Convenient application and reloading process 10

Octopus cards (2) q Over 130 service providers q Widely used in - public transport - car parks - retail services (fast food, convenient stores, cake shops) 11

Octopus cards (3) - Self-help services e. g. vending machines, photo booths, photocopiers - Leisure and sports facilities e. g. swimming pools 12

Octopus cards (4) - Access control for housing estates and commercial complexes - Average daily transactions: - 7. 5 million cases - HK$48 million (US$ 6 million) - Potential use in schools 13

Smart ID card project (1) e-Cert Driving Licence Library Card Change of Address Provide a one-stop user-friendly tool for community adoption of e-business 14

Smart ID card project (2) q No need to carry a separate driving licence and library card q Option of a one year free use of digital certificate to be embedded onto smart ID cards q Great potential for development of automatic passenger clearance system at immigration control points 15

Electronic payment q Widely used in private sector, e. g. utilities companies, telecommunication operators, banks, etc. q Octopus card q Commonly used in paying Government bills. Over 7 million or 40% of payments made to Government by electronic means in 2001 -02. 16

Future Focuses in Hong Kong q Exploiting smart card and electronic payment technologies q Regional centre of ebusiness application development q Promotion of crossborder e-business developments 17

Future trends of smart card developments q Integration with tokens and security features q Multi-functions and onestop services q More user-friendly support services q Regional and international co-operation 18

Thank You 19