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Friday, June 6, 2014

MATATUS PREPARE FOR CASHLESS UNITS MOVE; AS DEADLINE NEARS


#DIGITAL PAYMENTS & REFORMS


Matatu owners lose a lot of money through extortion from cartels, bribes to police or even embezzlement by employers,” says Mr. Samson Kimutai; the Matatu Owners Association (MOA)  chairman.
Well, in just over a month’s time, you might find yourself unable to board a matatu if you do not have a Near Field Communication-enabled card as public transport makes the final shift to cashless payments.
The National Transport and Safety Authority (NTSA) deadline requiring all passenger service vehicles to exclusively use a cashless fare system lapses on July 1st. the directive is expected to go live in the capital first; before being rolled out in phases in throughout the country.

Matatu owners are optimistic that electronic modes of payment of bus fare in public transport will be the magic bullet that streamlines the chaotic industry; which is worth an estimated sh 205 billion.
Will history repeat itself? This however is not the first time Kenya has tried organizing its public transport system through digitizing fare payments.
Megarider; the earliest form of a cashless fare system; saw commuters buy monthly scratch cards that were redeemable in the then vibrant Kenya Bus Services (KBS) vehicles.
the system; which was popular in the 90s; enjoyed success until it was quietly phased out as a string of financial woes hits KBS and led to its eventual collapse.

In 2009, Tata motors and the Ministry Of Nairobi Metropolitan Development launched Smart Buses, an idea that became stillborn after large-scale deployment became impractical.
Google, through its product Beba Pay, launched in partnership with Equity Bank, leads a growing list of telecoms and financial providers including- Safaricom, Family Bank, Master Card and Visa-keen on tapping into the opportunities in the sector.

-by Embukane Vincent Libosso.


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