Octopus Card Limited - Epayment
Autor: Arthur422 • July 17, 2016 • Case Study • 1,733 Words (7 Pages) • 636 Views
ECOM6016 Final Assignment Worldwide Octopus |
By |
Chan Chiu Yu, Arthur 3035246794 MSc(ECom&IComp) (Work in collaboration with Chiu Ho Ying, Choco Choi Yee Hing Liz Kan Yu Kei, Roger Lau Wai Yee, Bonnie) |
1st April, 2016 |
- Background
Octopus Card Limited (“OCL”) has proposed a joint venture with the MasterCard (“MC”) for enabling Octopus to be used overseas via MC’s point-of-sales (“POS”). The business model will be promising by integrating the advantages of the two payment systems: the authentication of the Octopus card and the well-developed MC network. Although MC has introduced the contactless PayPass feature, it would not be applicable for the PayPass to be used in some daily payment, for example to be used in mass transits. It is because the existing credit card protocol involves the authorization procedure which requires online responses from the issuing bank and resulting a relatively long time for completing the transaction. By integrating the Octopus Card, the authorization procedure can be replaced by the Octopus mutual authentication in which the security protocol allows the authentication to be completed in a timely manner. The following diagram illustrates the general system flow:
[pic 1]
Diagram 1) Payment Rectangle for overseas Octopus
The above flow is aiming to create the lease system impact on both existing MC and OCL network. Besides, the collaboration will share a fifty-fifty profit margin as it allows both parties to enter a new era of business opportunities.
- Authentication
A sample scenario will be used to illustrate the general flow: an Octopus Card holder purchases a product of USD10 from an US merchant. In phase (a), the customer selects Octopus as payment method. The HKD equivalent amount will be shown instantly on the Point-of-Sales (“POS”) terminal at the merchant, in which the exchange are calculated according to the daily exchange rate sheet preloaded on to the POS via the MC network on daily basis. The existing exchange rate sheet of MC will be used. The rate is calculated using multiple market sources, such as Bloomberg, Reuters, Central Banks and others[1]. The reasons of preloading an exchange rate sheet to the terminal are listed as follow:
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