FEB. 7, 2019

MTT announces new fare payment technologies for public transport in Santiago

The Transport and Telecommunications Ministry has started a transition period to introduce technological improvements this year to validate payments, for example when paying with bank cards or using cell phones with a QR code. This change is required before the next tender for ancillary services in 2020.

Acting Transport and Telecommunications Minister, José Luis Dominguez, and the Director for Metropolitan Public Transport, Fernando Saka, have presented a plan to gradually modernize ancillary services for Santiago’s new public transport system. This new technology will bring about significant changes in fare payment methods and the way in which bus fleets on the roads are managed.

The plan was presented as a new benchmark in improvements to public transportation, along with the inauguration of metro’s Line 3 and the introduction of 200 electric buses. It will include a technological transformation in the way fare payments are made and in the software that manages the system and oversees route planning. These improvements, to be implemented gradually, are part of the early stage of a process that will result in a new public tender for services in 2020.

"As requested by President Sebastián Piñera, we have developed a new public transport system that will improve the quality of life for everyone. We are now making progress with a modernization plan for technological services, while we finalize the new tender. Some of the user benefits include payments using a telephone, QR codes, bank cards, weekly or monthly direct debits, and the internet. This application will also provide real time information to the user, which will include contingencies, in order to improve the efficiency of travel planning,” emphasized the Acting Transport and Telecommunications Minister, José Luis Dominguez.

The new system will also include an option to transfer balances between family members as part of a new family version of the “Bip” public transportation card. It will also be possible to top up “Bip” cards weekly or monthly.

"This transition period will allow us to guarantee continuity of services, incorporate better technology, increase competition, expand the payment network, save resources and prepare for the 2020 bidding process," noted the acting minister.

The Transport and Telecommunications Ministry introduced these changes by creating a transition plan with the four technological suppliers (Metro, Sonda, Indra and AFT), while it develops the tender for these services to be awarded in 2020. This plan will achieve savings of about US$1.3 million annually and will allow sufficient time to migrate services, as this process will continue for at least 36 months.

Director Fernando Saka stressed that during this period, more than 7,000 validation machines will be renovated, making it possible to validate on the bus “Bip” card top-up payments made via the internet. This will help reduce travel times. Also, a new system to manage the fleet will be implemented. It has been designed to improve bus availability, monitor operations and provide information to bus passengers.

Mr. Saka explained that "the architecture for this technological model guarantees operational continuity and introduces better technology and services. This prepares the fundamentals required for the new tender and for system modernization."