Over the past 12 years, Hong Kong's ubiquitous "Octopus card" has brought cashless payment to every facet of daily life, allowing people to ride subways, pay phone bills and buy groceries with a small plastic card.

Several Chinese municipalities are already drafting plans for all-in-one citizen cards that use the same technology as Octopus.

Hangzhou, the capital city of Zhejiang, says it has issued about 2.3 million citizen cards since 2004, accounting for 90% of local residents over 16 years old. So far, the card covers such services as social security, medical and health care, public transportation and public facility access.

On the other hand, the number of cards doubles as they make payment quick and easy. "Hangzhou's citizen cards have already entered every aspect of citizens' daily life,"  the department, which issued the citizen cards, said in a written report.

Hangzhou says it is currently planning to store personal information about its 6.7 million residents into a central database, which will also list medical, educational and housing benefits available to cardholders.

In year 2010, Hangzhou plans to issue citizen card in greater Hangzhou area, i.e. Xiaoshan, Yuhang, Fuyang, Tonglu, Jiande, Lin’an, etc. The application of the card is also expand to other areas, including health data filing, water, electricity, and traffic ticket payment.