The push for a cashless economy has got a big boost following the launch of a contactless smart card-based fare payment solution on Tuesday, offsetting the need for commuters to carry cash for public transport. 

The Tap&Go smart payment solution, by AC Group, seeks to automate public transport payment systems and to promote cashless economy, according to Patrick Buchana, the firm’s chief executive officer. The initiative is a joint venture between AC Group, a Rwanda technology company specialising in smart transport solutions, the government and city bus operators.

Buchana said the firm has already concluded an eight month-pilot study for the solution, and had mounted validators on selected buses to read and accept payment. Contactless cards were issued to commuters, he added.

"The system will ease revenue collection for bus operators. It also has ability to monitor the location of the bus, its speed and information about passengers onboard,” he explained.

"The system is designed to benefit Rwandan economy as it seeks to support the country’s efforts to become a cashless economy,” Buchana told The New Times.

He said the tech firm is currently working with Kigali Bus Services (KBS), adding that they will roll out the project to bring on board other bus operators.

RURA welcomes initiative

Emmanuel Asaba Katabarwa, the head of transport department at Rwanda Utilities Regulatory Agency (RURA), said the initiative will help make the public transport system in the country more reliable and sustainable.

Katabarwa said an efficient public transport benefits the operators, citizens and the government.

There are three public transport operators in the City of Kigali – Kigali Bus Services (KBS), Rwanda Federation of Transport Co-operatives (RFTC) and Royal Express – as part of efforts to streamline public transport system in the city under the Kigali Transportation Master Plan that was unveiled in 2013.

The plan sought to improve city transport, easing movement of city residents.

How Tap&Go works

With the system, commuters will be able to top-up their cards from mobile agents along bus lanes, as well as USSD mobile top-up channels with mobile money, Tigo Cash and Airtel Money, and Pivot Access agents.

KBS has been the pioneer bus operator to use the Tap&Go solution, and targets to reduce on cash payments in January.

According to Charles Ngarambe, the KBS executive director, the service will help bus operators make informed decisions.

"It will enable us to switch from a paper ticketing system to a more environmentally-friendly and advanced electronic payment system. This will save time and reduce on transaction costs, thus making the industry more efficient and profitable,” Ngarambe, also the chairperson of the Association of Public Transporters, said.

Ngarambe said all KBS commuter buses have been mounted with validators, adding that commuters can now buy the smart cards for the solution at their offices, among other places.

business@newtimes.co.rw