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

[ICT Researcher]

"There are over 22,000 public transport vehicles in the country used by about 1.5 million passengers daily,"

Do the maths yourself:

a) Each mpesa transaction costs? Least fare?
b) Double passengers no (for return trips)
c) multiply by 365 days in a year

and the winner is......?????


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On Mon, Jan 6, 2014 6:12 PM MSK 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) 
>
>