Cashless fare system opens new window for investors

The switch to cashless fare system, though slow, has begun to open new opportunities for businessmen that players say could create more jobs even as it fights corruption in the transport sector.

Providers of Point of Sale (PoS) terminals are already cashing in on sales of the devices, hoping to sustain a new line of business as support services providers to matatu operators.

Tracom Services Limited has, for instance, trained engineers to diagnose and repair components of the terminals, making it unnecessary for businesses to buy new PoS gadget or to send faulty ones back to overseas manufacturers for repair.

“We have embarked on a continuous training programme that will ensure we have a pool of local engineers, who can handle PoS hardware technology locally as we seek to improve service delivery in the financial sector through secure payment devices,” said Tracom Services managing director Paul Njau.

With the growing uptake of PoS technology in the banking halls, restaurants, buses and parking points, industry players project that demand for support services will definitely go up.

Matatu saccos have also created job opportunities as they seek agents to sell cards to commuters. With an estimated 80,000 matatus in the country, the sale of transport cards is set to be among leading job creators in the country as the adoption of cash-light cards picks up countrywide.

For instance, Fiber Space Limited in partnership with more than 100 Saccos running over 6,000 matatus has in the last month created 2,000 jobs for the youth.

For every ‘My 1963’ card sold by the groups, the youth working for saccos get a commission of Sh20. The close to 2,000 youths selling the cards are on a monthly payroll, earning between Sh15,000 and Sh20,000.

Mr Mwakio Ngale, the owner and General Manager of Fiber Space Limited said: “Anytime technology is introduced, there are always job loss fears. But such new technology creates jobs.”

The MOA Compliant Sacco,, which plies the Ngong Road route has a fleet of around 67 buses and has employed 40 people to sell the cards, for example.

While commenting on the opportunities that the cash-light fare system brings to the country after the launch of Abiria card, KCB Group head of channels Dennis Njao said: “The greatest opportunities in this discussion include re-orienting the economy towards a cashless economy, understanding the sector for better financial support, formalising the sector, protecting the investors income, supporting customers plan their finances better, drive financial inclusion among other opportunities, increase access to credit facilities to operators and their workers.”

Other cashless fare payment cards in the market include BebaPay by Equity Bank and Google, Abiria (Kenya Bus Service) and Tangaza Pesa PSV card.