Hong Kong’s MTR Corp awarded a contract to AlipayHK, the local mobile payment unit of Ant Financial Services, to introduce QR code-based payment on the territory’s mass transit system starting in mid-2020.

Customers will be able to use their mobile phones at 91 ticket gates at MTR stations across the territory. Hong Kong’s subway carries about 5.8 million passengers a day.

Under the contract, AlipayHK will design and build an electronic payment system, which will include QR code scanners at all entry and exit gates as well as back-end equipment in the rail network.

MTR Corp said in a statement AlipayHK is required to develop a system which is compatible with QR code-based payment systems to be used by other service providers. Under the contract, AlipayHK has 12 months’ exclusivity in using the system it develops, after which the train operator has the right to bring in more service providers to use the system for QR code payment so as to provide more options to passengers.

Jeny Yeung, commercial director of MTR Corp (pictured, fourth from right), said it has been keeping close tabs on changing customer needs and technology trends.

She added: “Mobile payment has been an important focus in the past few years. We successfully launched QR code payment for the Airport Express and introduced ticket machines and vending machines that accept mobile payment at designated stations since 2015. We are delighted to be taking a major step forward in making payment more diversified and convenient for our passengers through the collaboration with AlipayHK.”