Busan City will begin a pilot program for a cashless bus system starting in October, covering 35 routes and 542 buses.
With the cash fare usage on city buses currently dropping to about 1%, this initiative aims to reduce costs associated with cash fare management and transition to a transportation card-based fare system.
Starting in October, the pilot program will run for three months, involving approximately 20% of the city's buses. The selected routes include seat buses and those with relatively low cash usage. During the pilot, the city plans to analyze citizen feedback, the usage of alternative payment methods by cash passengers, and input from drivers and transportation companies before deciding on a full rollout.
Passengers with only cash will still be able to use the buses. The city will implement a 'priority boarding' policy, instructing passengers to transfer their fare to a designated account after boarding. For those who find smartphone transfers challenging, the city will guide them to purchase prepaid transportation cards at convenience stores.
Drivers will not verify account transfers or explain payment methods during boarding to avoid delays and safety issues that could arise from extended stop times or distracted driving.
A Busan City public transportation official stated, "While we will track the amount transferred and the recovery rate, we do not have a system in place to contact passengers for unpaid fares. Even if some payments are missed, the cashless system is financially more efficient considering the costs of cash management." Currently, the city spends about 1 billion won annually on maintaining cash fare boxes and managing cash revenue.
The official added, "Currently, cash fare usage on Busan city buses is just over 1%. If the cashless bus system is established, we expect cash usage to drop to around 0.1%. Even with some unpaid fares, we believe the financial impact will be minimal compared to cash management costs." In other regions that have already implemented cashless systems, cash usage has significantly decreased. For instance, in Daegu, cash fare usage dropped from over 2% to around 0.1% after the introduction of cashless buses. Other metropolitan areas, including Gyeonggi Province, are also gradually expanding their cashless routes.
Busan is relatively late in adopting the cashless bus system compared to other metropolitan areas. The city will assess fare recovery rates, citizen inconvenience, and complaint occurrences during the three-month pilot before deciding on a full implementation.
A key challenge will be minimizing inconvenience for older passengers and those unfamiliar with smartphone transfers or transportation cards.
The city plans to conduct campaigns distributing transportation cards in areas with high elderly populations, such as traditional markets, and will provide information about the pilot routes and usage methods through various media, including bus signage and online platforms.
Prepaid transportation cards can be purchased at convenience stores regardless of credit status, making them accessible to citizens who may have difficulty obtaining credit cards.
A city official remarked, "For those who currently pay cash daily to use the bus, this may initially feel inconvenient. However, maintaining and replacing cash fare boxes incurs significant financial costs, and cash usage continues to decline. We hope citizens will view this as an adaptation to changing times." The official added, "Once accustomed, the convenience of using a transportation card without needing to handle change may be more appealing. We ask for understanding as everyone gradually adapts to this change and the purpose of the new system."
Busan City anticipates that establishing a cashless bus system will reduce delays and safety issues associated with cash handling. An increase in recorded entries and exits through transportation cards will also allow for more detailed analysis of bus usage, which can inform future route management.
Hwang Hyun-cheol, Director of Busan's Transportation Innovation Bureau, stated, "The cashless bus system aims to improve the convenience and safety of bus travel for citizens in line with the evolving public transportation environment. During the pilot, we will thoroughly gather feedback from citizens and on-site personnel, prioritizing adequate advance notice to minimize any inconvenience caused by the system change."
* This article has been translated by AI.
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