( CNN ) -- Everyone knows Hong Kong as the buzzy island city home to over seven million people perpetually on the move . But it may be a surprise to learn that many of the residents in this bustling city do n't spend much time foraging in their pockets for change , especially on public transport . Instead , they whip out their Octopus , a contactless smart card with a chip that communicates with a fare processor in less than a second . It has been in use in Hong Kong since 1997 . According to the company , around 95 percent of people in Hong Kong between the ages of 16-65 have an Octopus card , and their transactions add up to about 18 million dollars every day . But what 's new about Octopus is that recent advances in technology mean that it 's being used with phones too . `` Now with the advance of smart card technology , we 've been able to embed the Octopus mobile SIM inside a smartphone , '' explained Octopus CEO Kevin Goldmintz , in an interview with CNN 's Kristie Lu Stout . Trains , buses , trams and ferries are all popular places to get around with Octopus , whether it 's on a card , a phone or a watch . Since the Octopus card was released nearly two decades ago , its use has branched off into much more than just transport . Forgot your wallet , purse or cash ? Not to worry . The Octopus can buy your coffee , a movie ticket , clothes , groceries and even allow you to shop online . Another new venture is that Octopus has recently partnered with Taobao , China 's e-commerce answer to eBay or Amazon . Though purchases have to remain relatively small with a current ceiling of $ 130 on each card , Octopus says it allows the customer to easily interact for a purchase . Shoppers simply need to make a purchase on Taobao by putting their phone with the Octopus mobile application up to the screen and tapping to make that transaction happen . Octopus has broadened its reach into mainland China with a dual card in Guangdong province and another in Shenzhen . `` We 're able to put a Hong Kong dollar purse inside the card , as an e-wallet , '' said Goldmintz . Octopus says its vision for the next ten years includes tackling the physical/digital convergence and growing its e-commerce strategy . `` And I think the other side of it will also to be exporting the knowledge that we 've accumulated over 17 years of doing contactless smart card , and deploying that knowledge in other cities around the world , '' Goldmintz told Stout . As for the future , Octopus is optimistic that a cashless society will spread to other areas , particularly in its own patch of the Asia-Pacific area . `` You know I buy my lunch with my Octopus . I pay for drinks on Octopus . I buy coffee with my Octopus , '' said Goldmintz . `` So I think there will be day when both Hong Kong and other cities around Asia-Pacific particularly will be looking towards a cashless society , '' he said . `` I think we 're going to make huge in-roads in the next five to ten years in this . '' The best way to experience Hong Kong ? Climb aboard one of its iconic trams .
Hong Kong residents have a fairly cash-free life , especially on public transport . The Octopus card , already 17 years old , is now used for several types of commerce . Octopus sees a cashless society as a reality , especially in the Asia-Pacific region .