Hong Kong consumers spoiled for choice as payment platforms offer sweeteners to win users ahead of consumption voucher release

Competition for shoppers has intensified days after the government announced the distribution date of the remaining consumption vouchers, with two of Hong Kong’s major payment platforms racing to offer perks and discounts.

Octopus Cards and tech giant Tencent’s WeChat Pay HK said separately on Wednesday they would offer e-vouchers to new users or those who chose to switch payment platforms.

Octopus will reward new users or those switching to the platform with HK$50 (US$6) in top-up value, and if they register with its mobile app, the amount will go up to HK$100. In addition, the company offered as much as HK$100 million in sweeteners for spenders.

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Octopus will distribute 1 million cash coupons for participating merchants which include fast food chain McDonald’s, convenience chain Circle-K and home goods store JHC. The coupons will be given out on a first-come, first-served basis over four weeks.

WeChat Pay HK will offer a HK$50 electronic voucher to new users or those who switch payment platforms.

“This includes returning users as well,” Daniel Hong, vice-president of fintech at Tencent, said, referring to those who had used WeChat Pay to claim earlier rounds of consumption vouchers, switched to another platform, and decided to revert this time.

All shoppers who use WeChat Pay to claim the latest consumption vouchers will also get five lucky draw chances to win up to HK$98 in electronic cash or HK$10 coupons for select merchants, including health and beauty retailers Mannings and Watsons, food delivery platform Foodpanda or convenience store chain 7-Eleven or HK$5 for restaurant chain Cafe de Coral.

Consumption voucher users will also earn double e-stamp rewards, which can be used to redeem merchant offers.

Hong said residents’ spending habits had changed over the years.

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“We noticed that when the consumption vouchers were first introduced in 2021, people seemed to be really excited and tended to spend more on high-value goods such as mobile phones, electronics, luxury make-up and handbags,” he said.

“But starting last year, perhaps people became accustomed to the vouchers, we saw people spending more on everyday goods, such as groceries.”

Tencent said the number of registered users for WeChat Pay HK grew almost 30 per cent from 3.85 million in 2021 to more than 5 million this month, although it was unclear how many were related to the consumption vouchers.

The government announced on Monday that eligible residents would receive the second instalment of this year’s consumption vouchers on July 16, with the aim of giving the economy a HK$13 billion spending boost.

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Permanent residents and new arrivals from mainland China aged 18 and above will receive HK$2,000, while those who arrived under various work and talent schemes, as well as study programmes, are in line to get HK$1,000.

Apart from WeChat Pay HK and Octopus, four other payment platforms – AlipayHK, BOC Pay, PayMe from HSBC, and Tap & Go – are also taking part in the government’s voucher scheme.

AlipayHK is part of Ant Group, an affiliate of Alibaba Group Holding, owner of the South China Morning Post.