Hong Kong is known for its status as a world financial center and having one of the freest economies in the world. The government takes pride in having no trade restrictions, no sales tax, and a simple tax code. However, despite its reputation as a technological hub, Hong Kong's E-payment technologies are not as advanced as one might expect.
Despite the city's low corporate tax rate of only 16.5% and a simple tax code, many business owners in Hong Kong prefer to operate as cash businesses to provide flexibility in tax reporting. This is due to concerns that third-party payment platforms may be required to report details to the government in the future. As a result, most small-medium size enterprises (SMEs) in Hong Kong prefer cash over credit card payments. Taxis, non-mainstream electronic/computer stores, and many mom and pop restaurants will only accept cash payments. It's important to keep this in mind and exchange for Hong Kong Dollars while visiting the city.
The Octopus Card has been the major form of E-payment in Hong Kong, especially for transportation, food, and small-amount shopping. However, with an increasing number of Chinese visitors, many businesses have started to accept payments through WeChat, a popular social media-messenger in mainland China. In addition, Alipay and Apple Pay are also becoming more common in Hong Kong.
If you have an HSBC account, it's useful to download PayMe, a payment app developed by the bank for its users. PayMe allows you to pay at small shops with the app and also make payments to other individual HSBC account holders, making it a convenient option for sharing a dinner bill or a taxi ride.
Tipping can be a confusing issue for travelers in Hong Kong. Here is a quick reference guide for different scenarios: