CASHLESS TRANSPORT SYSTEM

This is whereby the transport system is digitized.  The implementation of the system, starting with Nairobi, will see passengers using a pre-paid system to pay for their transport as opposed to the current cash system. The Card is free and there is no fee charged for topping up.

Benefits of this Transport System to the Passenger

• Cashless payment will curb the menace of hiking of fares during peak hours as it will allow a fair pricing system with no issuance of change.
• It is convenient and also helps you manage your budget easily

Key Players

Matatu Industry

As a way of embracing technology the matatu industry has partnered with a technology company (Fibre Space Limited) to come up with a cashless payment card known as 1963. The card will be used by commuters to pay fares on all 1963-compliant matatus and buses. 

The 1963 cards can be acquired for free by registering with a 1963 agent. However, for their card to be activated they will be required to top it up with a minimum of Sh50. The card also has a redeemable points system that provides a loan of up to 10 per cent.

Commercial Banks

Co-operative Bank is working on a prepaid card that uses tap-and-go technology as well as an online payment through which matatu owners will track all fare transactions in real time. 

Family Bank is eyeing the market with its Pesa Mob app.

Google in partnership with Equity Beba Pay a Hong Kong firm Tap-to-Pay that is working with the Kenya Bus Service to pilot a pre-paid plastic called Abiria Card, are also in cashless payment market.

Other Organizations

Safaricom’s Lipa na M-Pesa is another key player

In my own opinion, this could also improve the issue of road safety because as commuters switch to cashless transport system it will reduce cases of robbery and any other bad encounters while on your way to your intended destination.