The growing reports of conductors overcharging passengers or deliberately disabling the use of student cards after a certain hour in the evening highlight a pressing concern—why hasn’t the digitization of bus fares been fully embraced? The initiative was first introduced on 14 March 2017, by Sajha Yatayat in Kathmandu, initially implemented on 10 buses along the Lagankhel-New Buspark route. The system aimed to bring efficiency to fare collection and put an end to unfair pricing practices. However, despite its potential to streamline public transportation and ensure transparency, the adoption of smart travel cards remains sluggish.
Sajha Yatayat installed smart travel card readers on both doors of the buses, enabling passengers to pay fares by swiping their cards upon entry and exit. The system deducts fare amounts based on the traveled distance. Sajha planned to expand this system across all routes within the Valley. Smart cards were made available for purchase at the Pulchowk office and Lagankhel bus stop, with recharges facilitated through bus conductors or Sajha offices. Despite these efforts, the adoption of smart cards remains minimal after a year of operation.
Before Sajha Yatayat, city buses operated by Global Metro City Bus Company in Bharatpur and 800 buses in Pokhara adopted smart card technology; these systems failed due to issues such as recharging difficulties, technical malfunctions, and lack of government mandates.
Janak Risal, Assistant manager of Sajha Yatayat office said, “We introduced the bus card digital payment system to better understand the flow of passengers and to know how many passengers were using the bus in which routes. The goal behind this initiative was to keep accurate records of commuters and improve our understanding of bus usage patterns.”
He mentioned that there are fewer regular passengers who consistently use the bus on the same route, and many don’t prioritize getting a monthly bus card subscription. “We’re currently working on improving this, and to raise awareness, we’re displaying the importance of digitization at the front of the bus.”
“We’re also hopeful that other bus services will start coordinating with us, as in the past, private buses haven’t been as involved. Another challenge we face is the lack of WiFi availability on all buses, and we’ve noticed that some elderly passengers struggle to navigate the system. We’re working on addressing these issues to ensure the transition is smooth for everyone,” he added.
Risal explained that many people are unaware of the system, and during a survey, they didn’t see much interest from passengers either. To help raise awareness, they’ve equipped each bus with WiFi, hoping this will encourage people to get familiar with the system over time. “Our plan is to gradually normalize online payments among passengers and, eventually, transition to a completely cashless system on the buses.”
While the idea of a smart card fare system sounds like the perfect solution to Nepal’s long-standing issues with fare collection, its implementation has been anything but smooth. Several challenges continue to hinder the widespread adoption of this digital payment method, keeping Kathmandu’s public transport stuck in its traditional cash-based system. We can know normally that for years, bus conductors and drivers have pocketed a portion of daily fare collections, often reporting only half of their actual earnings to vehicle owners. A fully digital system would track every transaction, cutting off this extra income source.
One regular passenger from Bhaktapur shared, “This is a great initiative for our country. I’ve often seen conductors being rude, and sometimes, when we’re in a hurry, it’s frustrating not having the exact change. With this system, there will be no need to worry about that anymore.”
He said that the government should implement digital payments to reduce travel time, and eliminate the need for exact change. It would simplify drivers’ jobs, provide transparency, and help track payments. “However, challenges such as network issues, resistance to change, and potential technical problems like poor connectivity or low battery for passengers may arise.”
Many countries around the world have successfully embraced innovative changes in infrastructure, technology, and policy, why does Nepal seem hesitant to follow suit? Countries like South Korea, Denmark, and Singapore have adapted to new technologies, improved transportation systems, and embraced environmental reforms with ease. So, why is it that when it comes to implementing similar changes in Nepal, there seems to be a lingering sense of fear or hesitation?
The smart card systems offer seamless and cashless travel, reducing the hassle of carrying change and speeding up the boarding process. They have not only improved the efficiency of public transport but also increased the convenience for citizens. In contrast, Nepal’s public transport system still relies heavily on cash transactions, creating bottlenecks and inefficiencies that could be easily resolved by introducing a similar card-based payment system.
For example, Singapore, where the adoption of a contactless card system revolutionized the city’s transportation network. People embraced the convenience, and within years, it became the norm. Similarly, in South Korea, the T-money card has been integral to a sophisticated, efficient public transport system.
Yet, in Nepal, the discussion about introducing a bus card system has been slow to gain momentum. The fear of a large upfront investment or the complexity of implementing such a system has kept it on the back burner for years. But what if Nepal’s hesitation isn’t just about cost, but about a deeper reluctance to embrace change?
Countries that have adopted these smart systems have shown that education and public awareness are key. A bus card system isn’t just a new way to pay for a ride—it’s a cultural shift. If Nepal’s government, bus operators, and the public can come together to educate and raise awareness about the ease and advantages of such a system, the transition could be much smoother than anticipated.
The introduction of a digital fare system raises concerns about job security among conductors. If passengers can simply tap their smart cards and board the bus, the role of a conductor traditionally responsible for fare collection could be diminished, leaving many workers uncertain about their future in public transport. A large portion of Nepal’s transport workforce has limited experience with digital tools, making it difficult for them to transition to a tech-driven system.
Overcoming these barriers will require more than just technology—it demands a coordinated effort between transport operators, government bodies, and financial institutions to create an integrated, user-friendly, and widely accepted digital fare system.
To ensure fairness and efficiency in the implementation of bus fare systems, the role of technology experts becomes increasingly crucial. With their expertise, we can build robust systems that not only streamline the process but also ensure transparency and fairness for all users. This technological intervention will be essential in creating solutions that prevent fraud, simplify payment methods, and make the entire fare collection system more user-friendly, thereby fostering trust and accessibility for everyone.
For Nepal’s public transport sector to successfully transition to a digital fare system, government intervention is crucial. One effective approach could be introducing tax incentives for digital payments, encouraging both passengers and transport operators to embrace the change. Valuable lessons can also be drawn from the success of ride-sharing services like Pathao and inDrive, which overcame similar resistance by implementing smart strategies. These included extensive education campaigns for both passengers and drivers, attractive incentives and discounts for digital transactions, simplified and user-friendly technology, strong customer support systems, and close collaboration with regulatory bodies to ensure smooth operations.
According to Madhav Raj Pandey, Section Officer at the Transport Management, The policy to implement an online payment system along with a GPS feature and WiFi in 100 buses is underway. While the integration of these technologies will enhance the efficiency and convenience of the service, it will take time to develop and implement a robust system to ensure seamless functionality.
“The new system will keep a detailed record of all transactions, helping to reduce incidents of conductors overcharging passengers. By securely storing this information, the system will ensure greater transparency and accountability.”
Pandey added, “We’ve been raising awareness about it through Radio FM broadcasts from traffic FM and sharing informative videos on our Facebook page, Newspapers highlighting the importance of these initiatives.”
As Nepal looks towards the future of public transportation, the introduction of a bus card system is just the beginning. The real potential lies in scaling this system to encompass all forms of transport, from taxis to microbuses. Imagine a seamless travel experience where a single card allows access to buses, taxis, and even tempos, making the city’s transport system more connected, efficient, and user-friendly.
The economic implications of such a digitized transportation system are far-reaching. By moving away from cash-based transactions, Nepal can foster a more transparent and efficient economy. Digitization reduces the cost and risks associated with handling cash, prevents revenue leakage, and increases efficiency for both passengers and operators. With easier tracking of fares, the government can implement better pricing models and even offer incentives or discounts for sustainable transport choices.
By investing in this digital infrastructure, Nepal can not only modernize its transportation sector but also pave the way for a smarter, more sustainable future. As we look ahead, it’s clear that the future of transport in Nepal is one of innovation, inclusivity, and sustainability. The question is no longer ‘Why?’ but ‘When?’
A well-implemented system benefits everyone, vehicle owners get transparency, drivers and conductors secure earnings, and passengers enjoy fair, hassle-free travel. With the right strategies, Nepal can finally move towards a seamless, digital public transport system.
