Paraguay payments watch: Transport card system, retailer tech push

Paraguay is preparing to end the use of cash to pay fares on public transport in Asunción metropolitan area.

From October 23, users of licensed bus services regulated by transport sub-ministry VMT must use a prepaid card.

Seventy percent of the metropolitan area’s fleet already have a card validator installed, the public works ministry said.

Private companies EPAS and TDP issue cards, known as Jaha and Más, respectively. 

In subsequent phases, card payments will be rolled out for bus services regulated by Asunción municipalities and for short, medium and long-distance services overseen by national transport department Dinatran.

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Authorities in Paraguay are also working to reduce cash payments in the retail space.

The industry and commerce ministry and payment acquiring firm Bancard inked an agreement designed to make it easier for small merchants to start accepting digital payments.

The Bancard onboarding process is simplified for merchants, who will be able to accept payments via QR code.

Merchants will not be charged a fixed fee for one year and will be charged a maximum commission of 3% on each sale, state news service IP reported.

Small businesses without a bank account can use an associated digital wallet into which customer payments will be deposited.

An associated app can generate dynamic QR codes.

In a related digital initiative, authorities announced a package of installment and deferred payment options to help drive sales.