SPTC celebrates success of cashless bus system |22 September 2023

Mr Zialor (right) and Mr Etienne during the press briefing (Photo: Joena Meme)

The Seychelles Public Transport Corporation (SPTC) is very satisfied over the recent transition to a cashless payment system for public buses, which commenced on July 1, 2023.

Acting chief executive Geffy Zialor shared during a press briefing yesterday that the corporation is highly content with the outcomes achieved, having successfully fulfilled 98 percent of its objectives.

Remarkably, the implementation of the system has led to a noticeable uptrend in public bus utilisation.

Prior to adopting the cashless system, approximately 50 percent of commuters paid R12 in cash for their bus fare. However, the shift to cashless payments has made the service even more affordable, with fares reduced to R10. Alongside the cost savings, commuters have also benefited from speedier boarding procedures.

"Our primary aim was to maximise passenger usage of our services, and over the past two months, we have observed an average increase of seven percent in bus passengers," Mr Zialor stated.

Despite the slight reduction of R2 on fares, SPTC’s cash flow remains “healthy” and the company’s “financial situation is stable”.

Furthermore, the cashless system offers advantages to SPTC drivers by eliminating the risks associated with carrying liquid cash on each bus.

SPTC currently operates a fleet of approximately 200 buses, catering to around 50,000 commuters on a weekly basis.

In terms of revenue collection, the new system simplifies the process at around 70 reselling points on Mahé and Praslin, streamlining management and reducing the need for manpower involved in cash handling. Consequently, issues related to failures to cash in and cash shortages have become a thing of the past, as highlighted by Mr Zialor.

Nevertheless, SPTC continues to encounter some minor challenges, including occasional instances where commuters have insufficient funds on their travel cards or possess expired cards, such as pensioners and student cards, which are government-funded or subsidised.

Additionally, the corporation faces challenges with resellers' operating hours, which occasionally inconvenience consumers, as well as resellers not adhering to sales terms, and a few isolated cases of resellers not settling payments on time for reloading of their Point of Sales (POS) devices, thereby affecting their ability to offer services to the local community.

To enhance commuter convenience, the sales outlet at the SPTC Victoria Terminal is now open on Saturday afternoons and Sundays.

Corporate Affairs general manager, Alex Etienne, advised customers to plan their budgets and recharge once to cover their monthly travel expenses. He also highlighted that customers have the option to recharge through the SPTC mobile application or the online platform. Currently, approximately 10 percent of customers are opting to recharge through the application.

Mr Etienne further clarified that resellers have the discretion to decline debit card payments due to the additional bank commissions associated with them.

"SPTC incurs a commission when customers transact through resellers, and if a commuter chooses to use a debit card, there is an additional commission component. This would place resellers in a situation where they would need to absorb the extra cost, and on top of that, we would still have to reimburse them for the commission paid. This would result in a larger portion of the R10 fare being paid out. At present, SPTC has determined that providing a higher commission would not be sustainable," Mr Etienne stated.

Resellers benefit from a commission of around three percent on the POS recharge amount. Card payments are accepted at SPTC terminals on Mahé and Praslin.

Mr Etienne added that the actual cost of a fare averages R15, and a portion of the cost is indirectly subsidised by government for local commuters.

To ensure easy access to the travel card system for visitors, SPTC has taken measures to allow them to purchase these cards through the Electronic Travel Authorisation system, with the option for card collection upon arrival at the airport. In cases where visitors are unable to collect their cards personally, SPTC offers a delivery service to ensure a seamless experience.

Visitors are also able to purchase cards through Post Offices and selected outlets.

Unlike local commuters, visitors have the option of four-day unlimited cards, eight-day unlimited cards, and newly introduced unlimited one-day cards.

“One of the challenges that we are facing is that small tourism establishments are purchasing store-value cards for their clients, which is problematic as visitors should not be subsidised,” Mr Etienne added.

Looking ahead, SPTC has ambitious plans to equip its entire bus fleet with the necessary technology by the end of the year.

Furthermore, the company’s goal is to incorporate QR code technology into its payment system, and provide commuters with access to their travel history to enhance transparency.

As a part of this initiative, SPTC will be launching a QR code pilot project on Praslin, allowing passengers to use their smartphones instead of physical travel cards. Buses operating on Praslin will be outfitted with QR code-enabled equipment, providing an added convenience for travellers, including tourists.

Before the year-end, it hopes to implement self-service kiosks in key areas.

The possibility of using debit cards directly on buses will be explored in future.

Laura Pillay