O-CITY, the automated fare collection provider by BPC, has been accelerating cashless fare collection across Kenya by providing a widely popular service, now digitising payments across over 10,000 matatus.
This represents a tenfold increase in matatus using the service since its pilot only a couple of years ago during the COVID-19 pandemic.
Dubbed ‘Lipafare’, the O-CITY pilot, designed to lessen reliance on physical cash at the height of the pandemic, was launched with transport savings and credit specialists, NikoDigi, and Kenyan payments firm, Tracom.
The platform leverages the popular M-Pesa mobile wallet, currently used by 90 percent of Kenyans.
“The booming success of this pilot shows that this is only the beginning of massive shifts across the region, the effects of which we are likely to see for decades to come. At O-CITY, we have been proud to connect the world in new ways,” said Tokhir Abdukadyrov, SVP of smart city and transport solutions at BPC.
” By leveraging mobile wallet M-Pesa, we have been able to scale the service quickly and easily so that customers and transport operators have more opportunities than ever.”
Matatus dominate transportation options across the country and are used by 70 percent of the Kenyan population serving Nairobi and additional long routes to Nanyuki Town, Kajiado Town, Eldoret Town and Limuru Town.
Users key in a code on their phone that debits their wallet and can immediately be seen by drivers to give access to the bus.
This removes the need for physical tickets and cash payments and replaces it with an accessible digital payment solution that is helping Kenyan passengers and transport operators to move more quickly through heavily congested routes in Nairobi.
It also increases transparency in fare collection between the drivers and the bus owners.
O-CITY also developed new systems to accommodate SACCOs, nudging Matatu users to opt for Lipafare as more payment methods are accepted in comparison to other ride-hailing companies.