Invisible threads: The unassuming tech powering our lives
After a last-minute decision to sprint up ‘The Peak’ in Hong Kong last week, I paused to take in the views of the sunset and the glimmering night lights.
As is always the case with technological innovation, the landscape will continue to evolve
It always fascinates me how much greenery the tiny city of Hong Kong packs in, and the eclectic mix of cultures and traditions that the city has to offer.
On my way down, I thought about the amount of tech that must be working in the background to keep the city functioning. Starting with the AI that optimises the frequency and movement of trains in the vast MTR (Mass Transit Railway) network to enable efficient but safe and reliable operations. Then there is the AI that helps us navigate around the city, presenting us with the optimal route and means of transportation given the varying traffic conditions.
That also got me thinking about the power of the tech running locally on my phone, from the use of biometrics to unlock the device, to email servers leveraging machine learning to automatically categorise emails into different inbox tabs as I zip around town. As well as the Gmail AI nudging feature that runs on both received and sent emails — a lifesaver for my overflowing inbox.
While these might not make sensational headline news, nor are these sexy and shiny features, these are nevertheless useful capabilities that help to make things run smoother and easier in our day-to-day lives. In other words, our co-pilot.
Sometimes the most useful things are unassuming and not new. They weave themselves into the fabric of our daily routines to the point we barely notice them. Just like the ability for an ATM to recognise the digits written on a cheque — which leverages machine learning techniques pioneered by prominent AI researcher Yuan LeCun in the late 1980s. For those who still use cheques, how often do we pause and wonder how this truly works?
The Octopus is another great example. The contactless, stored value smart card was launched in Hong Kong in September 1997, initially for tap-and-go for mass transit. Today, it is accepted at convenience stores and a myriad of dining and shopping locations for small-value payments, as well as tourist spots, including The Peak Tram.
It’s a super popular payment of choice for locals and was used by the Hong Kong government to disburse consumption vouchers during Covid. Through the years, it has evolved to include various wearable options, including smartwatches. The Octopus Wallet supports P2P payments and QR code payments in Thailand, and the Octopus Mastercard option can also be added to Apple Pay or Google Pay to extend payment capabilities around the world. It is hard to believe that it’s been around for almost 27 years already.
Speaking of payments, you would be forgiven for thinking that payments as a topic is stale. But it is far from it. QR code payments, for example, have exploded in popularity in Asia, starting with Alipay and WeChat Pay in China, with other countries soon following suit.
On a recent trip to Tokyo, I saw a dizzying array of payment logos. In fact, according to the 2024 Infcurion Consumer Payment Trend Survey, the use of QR code payment apps in Japan has reached a new all-time high of 68% this year. Some of the popular brands include LINE Pay, one of the first QR code payment services in Japan launched in 2014; PayPay, the leading QR code payment provider with 56.6 million registered users; as well as Rakuten Pay and d Barai. And just like their counterparts in China that started two decades ago, QR code payment apps in Japan have witnessed steady adoption by a broad range of demographics, including those in their 60s.
Fun fact, did you know that the QR code was invented in 1994 by Denso Wave, a Japanese company, to track parts as they moved through the automobile assembly process?
And therein lies the lesson for today. As is always the case with technological innovation, the landscape will continue to evolve. Success never happens overnight – rather, it is always built on top of prior innovations and lessons learned.
Along with the well-known success story of UPI (Unified Payments Interface) that has greatly increased financial inclusion and ushered in cascading innovation in India well beyond payments, the story in Asia continues.
Who says payments is boring?
About the author
Theodora Lau is the founder of Unconventional Ventures, a public speaker, and an advisor. She is the co-author of The Metaverse Economy (2023) and Beyond Good (2021), and host of One Vision, a podcast on fintech and innovation. She was named one of American Banker’s Most Influential Women in FinTech in 2023. She is also a regular contributor and commentator for top industry events and publications, including BBC News and Finovate.
