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Sunday, 12 February 2012

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Cashless travel

There is a quiet revolution in the country’s transport sector. No, it is not the addition of more SLTB and private buses to the fleet, though it is a very commendable move. It is not the addition of privately operated luxury compartments to intercity trains, which, again is a praiseworthy move. I am referring to the electronic ticketing revolution which is slowly but surely making an impact on the local transport scene.

It was perhaps two years ago that the first electronic ticketing machines were introduced to private buses. Here was a convenient method to issue tickets, with all details (start destination, end destination, full/half fare, sector, route number, distance etc) printed for easy reference. It is also an easy accounting system, through which the owner can calculate the day’s revenue and profits.

However, there are some private bus crews who do not always use this modern ticketing machine. They still do not issue tickets to passengers and often wait for a signal from a bus going in the opposite direction about ticket checkers.

They then go into a frenzy, issuing tickets to all passengers. The authorities must crack down hard on bus crew who do not issue tickets, which is the right of a passenger.

The transport sector is embracing new technology at a rapid pace. You may not think much about it, but cashless travel is already possible on some of our trains and buses.

Mobile phone

All you need is a mobile phone. You simply dial the number given by the operator and a customer agent will book an intercity train and inter-provincial bus tickets for you. Since the fare is deducted from your phone bill (plus a nominal service charge), there is no need for cash at the point of boarding. You can sometimes specify the seat you want. Now, the Private Transport Services Ministry has upped the ante with an electronic ticketing system for inter-provincial private buses. It will be operational from next month.

The idea is quite simple. It will be a pre-paid stored value smartcard that will enable the cardholder to travel any number of times until the funds are exhausted.

The authorities expect to issue an electronic card similar to the credit or debit cards issued by commercial banks for the use of schoolchildren, the clergy, journalists and retired public servants who use inter-provincial private bus services, as a pilot project. We can take one step further by having contact-less cards (you do not have to swipe them) connected to terminals which can read and deduct funds from these cards wirelessly.

If this pilot project is successful, the program will be rolled out to the public and more bus routes. The proposed inner-city low floor luxury buses will be ideal candidates.

Moreover, those who use the electronic card will get a minimum 10% to 15% rebate when using the card to purchase a ticket which will amount to a monthly reduction of about Rs.300 for a season ticket valued at Rs.800. Perhaps season tickets themselves could be issued in this manner.

The SLTB can also introduce a similar system, initially for the Southern Expressway. With a one-way ticket costing Rs.400 on this sector, regular commuters will appreciate a discount. The system should also be introduced for the railway service, which is now being expanded to the North. In the long run, one card would suffice for travel on both buses and trains.

It is thus important to standardise the system from the inception. Pre-paid mobile phone accounts can be recharged at thousands of points across the island and the same facility should be extended to the travel cards too.

Prevent malpractices

The new system has been designed to prevent malpractices by private bus conductors and contribute to minimise cheating, thereby increasing the income of private bus owners. It will also increase efficiency, because bus conductors do not have to issue tickets manually and give balance money (another contentious issue in private buses).

I have noticed another interesting trend. In the wake of the deployment of nearly 1,000 fully metred Nano cars as taxis by several companies, three wheeler drivers are falling over each other to install metres. Having failed in their efforts to dislodge the Nanos, they are doing the next best thing: If you can’t fight them, join them. If memory serves me right, these are the very people who agitated against a proposal to install taxi meters several years ago. However, now they have realised the true potential and convenience of the meter.

After all, it is mutually convenient for both parties (driver and passenger), because there is no need to negotiate a fare. You just pay the price displayed on the screen. This is a positive development.

It will not be long before every three wheeler is equipped with a meter.

Yet another ‘cashless’ feature is found in most Nano taxis. They accept credit cards and receipts too are issued. This is a boon, because many people are reluctant to carry even a few thousand rupees in cash in their wallet, lest it is stolen.

With numbers of card users rising rapidly, we hope credit and debit cards too will eventually be accepted in public transport.

Just as you can reserve bus, train and cinema tickets through your mobile phone, the phone itself can become a payment gateway.

This is the premise behind the Near Field Communications (NFC) technology, already trialled in some countries. NFC is a two-way system - you will get an instant feedback from your bank or payment solutions provider. It is a great idea to use NFC-enabled handsets to make payments in public transit systems. German rail operator Deutsche Bahn has successfully tested an NFC ticket pilot program. All you do is bring the phone near a terminal that can process NFC payments.The global transport sector is evolving and advancing rapidly. We have to keep pace with these changes and implement the latest ideas for the benefit of commuters. A cashless society is on the horizon and we have to be ready.

 

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