Hong Kong Octopus System Technology applied in the

Hong Kong Octopus System Technology applied in the use of the Octopus Card WY Lee Development Manager Creative Star Ltd

Contents u. Brief History and Current Status u. Card Technology u. Applications u. System u. Future Architecture Plan and Conclusion

Timeline u. First u. JV concepts – 1992 Shareholders agreement – 1994 u. Contract u. Sony Card selected – 1995 u. Public launch – Sep 1997 u. Deposit u 6 m award to system integrator – 1994 taking company – 2000 daily transactions – Nov 2000

The Organization u. Creative Star Limited – established in 1994 u. Service Providers • New World First Bus • NW Telecom • HKTel • Kwoon Chung Bus • New Lantau Bus • Aberdeen Maxicab • Swire Co. Ca Cola • 7 -Eleven • Wilson parking New World First Ferry HKUST Bus Hongkong & Kowloon Ferry Chung Tung Minibus HKR Airport Ferry Star Ferry Maxim Fast Food Vitaland School Shops Starbucks

Current Status u. More than 7 million cards + watches u. Average u. HK$40 u 40+ daily transactions around 5. 6 million in transaction value per day Service Providers u. Over 15, 000 devices in the field u 91% economically active population penetration

Card Technology u Sony Contactless Smart Card Technology u Radio Waves 13. 56 MHz u Communication u Memory: Speed: 211 Kbps EPROM 16 bytes x 96 blocks

Contactless Smart Cards - How they work Application Specific IC RISC Radio Transceiver Memory Antenna

Octopus watch u Small antenna u Non-metallic u Other case wearables

Personalized Octopus u Mandatory for Autopay u Used as Staff ID u Loyalty Schemes u Student Concessions u 350, 000 Issued Different data stored in card to identify concession, staff, bonus points, autopay etc.

Contactless Smartcard Readers Reader/Writer Distance: 100 mm / 20 mm Transaction time: < 300 ms CPU: 32 bit with RAM and Flash Interface: RS 232 C or RS 485

Encryption u. Fast symmetric encryption • Same keys for encryption and decryption u. Dynamic keys u. Different keys for different areas u. Mutual authentication (R/W and Card) • RW sends KA(RA) and expects KB(RA) • Card sends KB(RB) and expects KA(RB) • Subsequent messages encrypted by RB

Octopus Processor u. Sony Reader/writer inside u. Embedded u. Tailored • • • microprocessor system for the particular application Gates Bus unit Platform unit Enquiry unit Office unit Portable unit • • • Minibus unit Vending machine unit Retail unit Access Control unit Parking Meter Add value machine

Passenger Gate u. Controls also magnetic ticket and turnstile u. Connected to station computer

Peak Tram

Buses u. Driver control unit u. Route selection u. Sectional u. Driver fare sign-on card u. Wireless LAN connecting to Depot computer u. Fare table/ config/ programs can be updated via wireless LAN

PLB Operations

Light Rail u. Platform processors acting as: • Entry processor • Exit processor • Enquiry processor u. Deduct highest fare on entry u. Rebate on exit u. Bonus difference point scheme

Enquiry Terminal u. Details of last and up to 10 transactions u. Multi-language Chinese/English

Portable Card Analyser (PCA) u. Instant ticket inspection u. Facility for printing violation receipt

7 -Eleven u. Integrated with Point-of. Sale system u 7 -Eleven network connects all stores

Fast Food

Vending u. Vending - Swire Co. Ca Cola/ Vitasoy u. Photos

Access Control u Unique identification number for every Octopus card u Access premises • Tierra Verde • Waterfront u Controls door u Connected to Office PC for Access List Update

On Street Parking Meters u Integrated into different types of parking meters u Data collected via handheld computer u May go wireless in the future

Off Street Parking u. Octopus payment at Shroff u. Direct entry/exit using Octopus

Add Value u. Add Value Machines at stations u. Customer u 7 -Eleven service outlets stores u. Autopay • Dah Sing Bank • Standard Chartered Bank

System Architecture u Four inter-connected layers – Central Clearing House System (CCHS) – Service Providers’ Central Computer (SPCC) – Local Data Processing (LDP) 1. Octopus Processor

Fig 1 - Octopus System Sun ULTRASparc Server Backup Server Fiber Optic CCHS Frame Relay Network KCR LRT KMB CTB HYF SPCC MTR Frame Relay Sun Workstations LDP Octopus Processor AVM Gates

Systems u. Sun SPARC machines u. Unix operating system u. TCP/IP u. Frame network relay links u. Proven technology

Data Consolidation Creative Star Database Seq No. Date Time Amt 100 01/2/99 12: 05 -$3. 7 099 31/1/99 13: 15 +$100. 0 098 28/1/99 19: 05 -$3. 7 097 26/1/99 17: 00 -$8. 9 096 25/1/99 18: 20 -$9. 9 095 24/1/99 17: 20 -$8. 9 094 24/1/99 08: 53 -$9. 9 093 23/1/99 17: 00 -$7. 5 092 23/1/99 08: 20 -$9. 9 091 22/1/99 18: 52 -$9. 9 SP MTR MTR KMB MTR RV $197. 5 $201. 2 $104. 9 $113. 8 $123. 7 $132. 6 $142. 5 $150. 0 $159. 9 Last AV Device 091234 094567 094567 MTR Database Seq No. 100 099 098 096 094 092 091 Date 01/2/99 31/1/99 28/1/99 25/1/99 24/1/99 23/1/99 22/1/99 Time Amt 12: 05 -$3. 7 13: 15 +$100. 0 19: 05 -$3. 7 18: 20 -$9. 9 08: 53 -$9. 9 08: 20 -$9. 9 18: 52 -$9. 9 RV Details AV Dev 197. 5 Wanchai->Central 091234 201. 2 Kowloon Bay 091234 101. 2 Central->Wanchai 094567 113. 8 Wanchai->Mongkok 094567 132. 6 Mongkok->Wanchai 094567 150. 0 Mongkok->Central 094567 159. 9 Central->Mongkok 094567 KMB Database Seq No. Date 097 26/1/99 095 24/1/99 093 23/1/99 Time 17: 00 17: 20 17: 00 Amt -$8. 9 -$7. 5 RV 104. 9 123. 7 142. 5 Details AV Device Route 115 094567 Route 104 094567

Acquirer Interface Through SP’s network or Different types of Octopus Processor Acquirer Service Providers Reports Central Clearing House System

Future Plans u All transport applications u High-volume, low-value transaction businesses u Strategic partnerships for development of wider applications u Hybrid Cards • Octopus + credit/debit card • Contactless and Contact on same card

Conclusion u. Bring convenience to the public u. Bring benefits to service providers u. Reliable u. Low and fast payment cost operations

The Octopus – Thank You