AF Payments president and CEO Peter Maher bares expansion plans for beep cards operations next year in a press briefing in Makati City on Tuesday.
MANILA -- A private firm is eyeing to partner with jeepney cooperatives in the province of Bukidnon and the cities of Iloilo and Cebu for the installation of automated fare collection system on their jeepney units in support of the Public Utility Vehicle Modernization Program (PUVMP) in the country.
Peter Maher, president and chief executive officer of AF Payments Inc., the operator of the contactless payment system Beep Card, said the initiative is part of the expansion of its business operations outside Metro Manila next year.
“We are looking at jeepney co-ops in Bukidnon, Iloilo, and Cebu. These projects will come up and they all have to follow the franchising guidelines. We are one of the viable suppliers of fare collection systems. So, we expect that we will be given the chance to pitch to provide services,” Maher said in its yearend press briefing in Makati City on Tuesday.
Maher said an automated fare collection system will ensure that passengers will be able to pay accurate fares for their trips as he also expressed his support to the Landbank and Development Bank of the Philippines (LBP) in providing financial support to jeepney operators and drivers.
“We work with DBP and Landbank that have lending programs based on the modernization initiative. We are part of their offerings, so our system helps the banks to understand how the vehicles are performed from a lending point of view. So, the co-ops get to know good accuracy on automated reporting of their transactions, etc. So, it’s good for the operation of the bank. I think it is good for passengers as well who will pay accurate fares,” Maher said.
Under the PUVMP, jeepney units that are 15 years old will be replaced with Euro 4 engines or electrically-powered engines with solar panels for roofs. These jeepneys will also be equipped with closed-circuit television (CCTV) cameras, a GPS navigation system, an automated fare collection system, speed limiters, dashboard cameras, and Wi-Fi.
An estimated PHP1.5 billion will be given to transport corporations and cooperatives to buy new PUVs through the Development Bank of the Philippines’ Program Assistance to Support Alternative Driving Approaches (PASADA). The program will feature a 5-percent equity for vehicle purchase, 6-percent interest rate and seven-year repayment period.
Under PASADA, a maximum of 95 percent of the cost of the vehicle, and a maximum of 75 percent of the cost of the support facilities comprise the total loan per borrower. The government will also offer a maximum subsidy of PHP80,000 to cover the equity payment.
Jeepney operators will be required to consolidate into cooperatives for better access to resources, share operations and maintenance costs and maximize profits through efficient vehicle dispatch.
Meanwhile, Maher said the company also wants to establish its presence on car parks of business establishments in the country.
“We are working with Dela Rosa Carpark in Makati to utilize the Beep Card technology. This is the first time that the Beep Card technology will be used in carparks,” he said.
AF Payments is also looking to integrate the beep card system with the proposed Metro Rail Transit Line-7 (MRT-7) and the Philippine National Railways (PNR) Bicol projects.
The beep card has reached its one billionth transaction at the LRT 1, LRT 2, and MRT-3 which demonstrated the reliability and robustness of the system.
Over five million beep cards are currently in the market which are used to pay for fares at elevated trains and select transportation, toll fees as well as for purchases at retail outlets. (PNA)
