Paying in cash to be able to ride the MRT, LRT, trains, buses, and even e-jeepneys could soon be a thing of the past once the government’s plans for cashless payments in these public transport systems come to fruition.
This developed after the Department of Transportation (DOTr) announced that it is now looking to expand cashless payment in public transportation through the use of QR codes and other payment methods such as bank cards and mobile phones to further improve the country’s public transportation backbone.
In a Public Notice issued recently, the DOTr said that the payment methods now being considered include the use of quick response (QR) codes for mobile wallet applications, credit and debit cards, and near-field communications (NFC) technology in mobile devices such as smartwatches.
These payment methods, the notice said, may be used in buses, rail lines, and modern jeepneys.
Expanding the DOTR’s Automatic Fare Collection System
According to the DOTr, these new methods of payment would further expand the department’s current efforts on using an automatic fare collection system (AFCS) in public transport through its partnership with Landbank of the Philippines and their use of Europay-Mastercard-Visa (EMV)-enabled bank cards in modern jeepneys.
The pilot production testing of the project was launched last September 1 at the Parañaque Integrated Terminal Exchange (PITX) and sought to verify the entire AFCS under “real-time operating conditions” as well as its compatibility with the country’s mass transit system.
The project would also establish an end-to-end AFCS processing while helping the public become more familiar with using EMV-compliant bank cards to pay their fares.
“The use of the AFCS technology in the mass transit system expands the fare media the public can use, while offering a secure payment system, improved passenger convenience, and helps lessen card-issue and management costs for transit operators,” the media bulletin further said.
As community quarantine restrictions began to ease in some parts of the country at the height of the COVID-19 pandemic in 2020, the DOTr also signed a tripartite agreement with the LTFRB and PayMaya in an effort to provide additional livelihood opportunities to drivers as well as access to cashless payment options to drivers and operators of public utility vehicles.
Under the agreement, PayMaya would provide taxi and transport operators and their drivers with a “QR scan-to-pay capability” via its mobile app, which in turn will give them access to a digital financial account that they can use for daily transactions such as bills payment, airtime load reloading, and sending money to friends and family.
For its part, the LTFRB issued guidelines mandating taxis and TNVS to adopt cashless payments, such as PayMaya, as a measure to help curb the further spread of COVID-19. The order was issued at a time when transport services were beginning to normalize in areas under General Community Quarantine (GCQ).
“In the ‘new normal’, we must help everyone adapt to new and safer ways to lead our lives, and that includes the transportation industry. PayMaya is proud to support the government and transport operators not just in helping them accept contactless payments, but to chart the path towards their full recovery as well,” said Orlando B. Vea, founder and CEO of PayMaya.