[kictanet] Who will be the winner in cashless payment for public transport sector?

[Peter Wakaba]

good luck enforcing that.

With one statement last week the Matatu association Boss Dickson Mbugua put
paid to this mode of thinking.


On Mon, Jan 6, 2014 at 11:12 PM, <emuchiri at andestbites.com> wrote:

>  *>Who will be the winner in cashless payment for public transport
> sector?*
>
> Telecoms and financial institutions are likely to be at the centre of the
> new transition to a cashless payments. Regulations by the Cabinet Secretary
> for Transport and Infrastructure will see all public service vehicles
> required to use an electronic payment system starting 1st July 2014. Equity
> Bank and Google BebaPay prepaid plastic card launched in 1Q13 has made some
> inroad in payments but no data is currently publicly available on the
> number of users and volumes. Safaricom has registered over 1,300 public
> transport vehicles and taxis in its Lipa na M-Pesa platform. Either way,
> cash payments are still the predominant mode of payment for public
> transport.
>
> There are currently over 22,000 public transport vehicles and around 1.5m
> journies daily in Kenya by our estimate implying a wide gap to achieve full
> penetration. Cash payments pose a number of challenges to authorities with
> tax compliance, corruption and money laundering ranking high in concerns.
> The Economic Survey 2013 values Kenya’s road passenger transport business
> at KES 205 bn. The new rules on cashless payments will pit financial
> companies and telecoms which will bid to dominate the payments made in the
> sector.
>
> In China, China UnionPay and China Telecom, the largest players in their
> respective markets agreed to a comprehensive cooperation agreement with the
> aim to conducting an all-round cooperation in the financial payment and
> communication service areas, jointly expand the bankcard application in the
> communication and e-commerce fields and elevate the service level of the
> financial payment which is based on the communication network.
> Particularly, the partnership between the two big companies is expected to
> create a synergy in the mobile payment domain and co-promote the
> development of the mobile payment industry. We believe that this will be
> what will happen in Kenya where financial institutions will use the wide
> reach of telecommunications companies to reach the consumer. Whereas the
> urban public transport regulations now only require paper ticketing, we see
> an evolution where a personal smart chip card will eventually become a
> standard.
>
> (KNBS, Business Daily, Standard Investment Bank)
>
>
>
>
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-- 







*Warm Regards,  PETER WAKABA                  AFRICA BUSINESS EDITOR, CCTV
AFRICA             Every morning in Africa, a gazelle wakes up, It knows it
must run faster than the fastest lion or it will be killed. Every morning a
lion wakes up, it knows it must outrun the slowest gazelle or it will
starve to death. It doesn't matter whether you are a gazelle or a lion.
When the sun comes up, you better start running.- In "The World is Flat" by
Thomas L. Friedman.*
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