FinTech International Launches Smart Card and Offline QR-Based Digital Fare Payment System for Nepal’s Public Transport Sector

Kathmandu. As digital technology rapidly expands across Nepal’s banking, e-commerce, and other sectors, public transportation has continued to rely largely on traditional cash payments. To address recurring disputes between passengers and co-drivers over fares, change returns, and overcharging complaints, FinTech International Pvt. Ltd. has introduced a smart card and digital payment system for public transport.

The company, established nearly six years ago, had begun testing digital fare collection through Point of Sale (POS) machines even before the COVID-19 pandemic. Building on that technology, it has now launched a cashless fare payment service through validator machines integrated with GPS and geo-fencing technology.

According to Amit Shrestha, Chief Executive Officer of FinTech International, the system was developed to bring technological modernization to Nepal’s public transportation sector.

“While banking and e-commerce sectors have become fully digitized, public transport was still operating through traditional methods, with constant confusion over fare payments,” Shrestha said. “Inspired by the technology used in public transportation systems in countries like Singapore, we started working to solve this problem in Nepal as well.”

Under the new system, passengers can pay fares by tapping a smart card on a validator machine installed inside the bus. The process of tapping the card while boarding is referred to as “tap in,” while tapping again before getting off is called “tap out.”

The fare structure for each route is preset in the system’s backend. Explaining the process, Shrestha said the machine temporarily holds the maximum fare for the route when a passenger taps in. After the passenger taps out at their destination, the system deducts only the fare corresponding to the traveled distance and refunds the remaining amount to the card balance.

If the card balance is lower than the route’s maximum fare, the machine will not process the tap-in request.

In addition to physical smart cards, the company has also introduced QR-based fare payment through its mobile application. For this purpose, it has developed an “offline QR” system that works even without internet connectivity.

“Passengers can generate and save the offline QR code while they have internet access at home or elsewhere,” Shrestha explained. “Even if there is no internet during the journey, the QR automatically refreshes while tapping out. Through a single QR, the machine receives data regarding both boarding and drop-off locations and deducts the fare accordingly.”

To make the service more accessible, the company has arranged multiple options for card distribution and recharge process. Passengers can currently obtain cards by submitting basic details such as their name, phone number, and address through company representatives stationed in buses or through designated agents.

Shrestha said integration agreements have already been completed with digital wallets, including eSewa, Connect IPS, and Fonepay for recharge services.

“We are working to allow card recharges directly through digital wallets,” he said. “In the near future, users will also be able to request cards directly from wallet platforms and collect them within 24 hours from a convenient pickup center.”

The system also aims to address the misuse of student concession cards in public transportation. Instead of providing discounts on regular reusable cards, the company has introduced personalized transport cards in collaboration with educational institutions.

“We avoided offering student discounts on regular cards because they could easily be handed over to others and misused,” Shrestha said. “We are now coordinating with colleges to integrate transport functionality into college ID cards. Educational institutions provide us with student details, and we prepare personalized cards accordingly. The same card then functions both as a college ID and a transport card.”

The company claims the system will help eliminate fake student cards while ensuring transport operators do not face revenue losses.

Apart from benefiting passengers, the system is also designed to improve financial transparency for transport operators. FinTech International has developed a separate web portal through which operators can monitor the daily earnings of their vehicles in real time. Passenger fare collections are settled under a “T+1” system, meaning payments are deposited into vehicle owners’ bank accounts or digital wallets the day after the transaction.

Currently, the system is operational in 39 buses operated by Riddhi Siddhi Yatayat on the Nepal Engineering College route, where card distribution is ongoing. The company has also signed agreements with Nepal National Public Transport and Machhe Rajdhani Yatayat to expand the technology to their vehicles in the near future.

According to Shrestha, the company is currently distributing the cards in a user-friendly manner to encourage adoption. Although the technology and features place the card’s production cost at around Rs 200, the company says its primary focus at the moment is expanding usage rather than recovering costs immediately.

“Even today, bus fares are not always rounded figures like Rs 20, Rs 25, or Rs 30,” he said. “Sometimes the fare is Rs 19, Rs 23, or Rs 24. In such situations, co-drivers often do not have time to return the exact balance, and passengers also tend not to ask for it. As a result, passengers frequently end up paying more than the actual fare, which sometimes even leads to disputes between passengers and transport staff.”

He added that the money passengers usually forgo in small change effectively offsets the card cost over time. The company also plans to introduce loyalty programs in the future.

Shrestha further said the company plans to expand the card’s functionality beyond transportation by integrating it with shopping malls, retail stores, charging stations, and other daily services.

“For users who use the mobile app, there is currently no need for a physical card because all services are available digitally,” he said. “At the same time, tech-savvy family members can also create and load cards for others at home who may need them.”

According to the company, wider adoption of digital fare payments could significantly reduce disputes between passengers and transport staff while also minimizing the inconvenience caused by carrying cash for everyday travel.

पछिल्लो अध्यावधिक: जेठ १२, २०८३ ११:४१

टिप्पणीहरू