As LatAm says 'adios' to cash-based transport ticketing, BPC sees opportunities

Global payments solutions company BPC – which recently opened a subsidiary in Chile – is eyeing opportunities in the country's public transport sector, BNamericas was told.

BPC, targeting the automatic ticketing segment, is involved in a regulatory process associated with the so-called Perímetro de Exclusión framework.

BPC’s solution is the O-CITY platform, which brings a new way of paying on public transport in Chile, via open-loop technology and account-based ticketing.

As part of a push to modernize the public transport system, starting with the bus network, Chile’s government has processes underway to secure bus operators to provide services under Perímetro de Exclusión. Under these rules – designed to improve service levels – authorities establish what routes an operator must cover and special regulations governing fare structures, bus fleet age and technology adoption, among other areas. 

“Transport operators will need to adopt an automated fare collection system to be part of this new program, and that’s where O-CITY comes into play,” BPC Chile-based client director Javier Rios said. 

“Moving to fare automation and digital first experiences will allow all stakeholders, including the operators, to be equipped with a system to monitor and control their fleet and all of the transactions made within their network, with the objective to further improve user experience and transport efficiency.

“As well as combating fraud, such a system provides a more user-friendly means of payment.”

O-CITY helps bridge the gap between ‘old and new’ as it covers account-based ticketing, and close-loop and open-loop payments. In close-loop payments, a dedicated transport card, such as the Oyster card in London, is used to tap and ride. In the case of the newest technology, which is open-loop and account-based ticketing, any payment method can be used without having to be part of the system itself. 

Globally, on some contracts, BPC works with third parties. "These types of projects foster local and international collaboration, as we establish partnerships with local companies to improve efficiency and bring new travel experiences with a local touch,” Rios said.

Also, the O-CITY solution can potentially be used for payment for last-mile mobility solutions, such as e-scooters and bicycles, and generating user promotions and offers in conjunction with third parties.

Meanwhile, Latin America’s mobility sector is evolving as governments amend public transport contract tender rules, to make automatic fare collection solutions mandatory. 

A focus on measures that reduce COVID-19 contagion risk has accelerated a trend of authorities moving away from cash-based ticketing, Rios said.  

Benefits of automated solutions are lower operating costs, reduced friction for users, and lower rates of fare evasion. In Latin America, a challenge to implementation is cultural, as many governments are used to traditional fare collection systems. Boosting levels of financial inclusion – which the pandemic has helped with – is another. 

BPC, which offers various digital payment solutions to the likes of banks, payment processors, neobanks and transport authorities, works in 95 countries globally. 

Across Latin America, BPC is working on public and private sector projects targeting countries such as Chile, Peru, Costa Rica and the Dominican Republic. 

The company is also carrying out an expansion strategy in the region and seeking to position itself as a central stakeholder in the mobility ecosystem, Rios said.