UK based automated fare collection provider, O-City, has launched operations into Kenya heralding a new era of contactless matatu payments. O-City says that the new service will target up to 10,000 buses to become cashless and adopt contactless payments.
The new service is backed by M-Pesa based ticketing solution in partnership with transport savings and credit specialists, NikoDigi, and Tracom, a Kenyan based payments firm.
According to NikoDigi MD, Patrick Karera, the automated fare collection solution is dubbed ‘Lipafare’.
O-City says that the shift to contactless payments in Kenya public transport sector is ripe seeing that 70 percent of Kenyans use matatus for transport. In addition, there have been calls to reduce the use of cash in line with COVID19 pandemic containment measures aimed at reducing transmission.
The new service will leverage on Mpesa mobile wallet used by 90 percent of the population. In this case, passengers will enter a code on their phone and a debit made on their wallet which can be instantly seen by the drivers.
O-City believes the payment platform will increase transparency in fare collection between the drivers and the bus owners. The firm says it will deploy an educational campaign at drop off points aimed at sensitizing the drivers and bus owners on the benefits of the service.
O-City is a fare collection solution designed by BPC, a banking and payment firm, and has been adopted by more than 100 cities globally.