Commuters in the Philippines could soon pay for buses, jeepneys and trains using e-wallets, cards and QR codes, as the Department of Transportation (DOTr) moves ahead with a PHP 9.37 billion nationwide automated fare system.

The project, a hybrid public-private partnership, is awaiting government approval before the DOTr can begin bidding.

The winning bidder will build and operate the system before handing it over to the DOTr at the end of the concession.

One way to pay across transport modes

The Philippine Automated Fare Collection System (PAFCS) will support e-wallets, QR codes, debit and credit cards and other near-field communication (NFC) devices across buses, jeepneys, railways and other transport modes.

At its core will be a Central Transit Acquirer System, which will process interoperable payments across the country’s transport network.

The DOTr said the system will let commuters “use a single, seamless payment option across different modes of transport.”

Shorter queues, cheaper transfers

The project is expected to shorten queues at terminals and make transfers between transport modes smoother.

It could also lower travel costs by paving the way for a single boarding fee on trips that involve more than one mode.

Strong interest from bidders

More than 50 local and international companies joined a market-sounding exercise held by the DOTr and the Asian Development Bank in May.

Transportation Undersecretary Timothy John Batan said the turnout reflects strong investor interest, suggesting many firms may compete for the project.

GCash, Visa and Mastercard were among the firms that expressed interest in the concession earlier this year.

The new system will replace the current concession held by AF Payments, the operator of the Beep card, which expires in December 2027.

In the meantime, the DOTr plans to roll out automated fare collection across the entire EDSA Busway before the end of the year.

Featured image: Edited by Fintech News Philippines based on an image by pvproductions via Magnific.