Operator says P80 Beep card partially subsidized, gives firm 'zero profit'

AF Payments Inc. (AFPI), the consortium that operates the automatic fare collection system being used in the Metro Manila rail systems and on the EDSA Busway, on Friday said that the cost of the “Beep” or beepTM cards at P80 each is already subsidized.

In a statement, AFPI said that since during the initial launch of the EDSA Busway system from August 1 to September 3, 2020, it has has waived the monthly service fees for the first few months of the beepTM card operations “to help the bus consortiums and bus operators that are impacted by lower utilization of their vehicles due to the pandemic.”

“To further reduce the impact of the shift to cashless ticketing, AFPI reduced the cost of the beepTM cards during the initial phase which ran from August 1 to September 30, 2020,” it said.

“At the end of the initial phase of implementation, specifically October 1, the beepTM cards were sold for P80 at zero-profit, still partially subsidized as the full cost upon turnover to buyer is more than P80,” it added.

AFPI —the consortium composed of conglomerates Ayala Group and First Pacific Group — made the statement after Transportation Secretary Arthur Tugade called on the company top give the Beep cards for free to commuters to ease the burden to consumers, who are reeling from the impact of COVID-19 pandemic.

Tugade also wants commuters to have the option to load the card with the amount they need for the fare.

In a Senate hearing, the Transportation chief reiterated his call to make the automated fare collection system tap-in card free of charge. 

AFPI, however, said that purchase of beepTM card is “one-time” for the passenger.

“[A]nd those that already have their own cards (there are 7 million cards in circulation) may continue using it by topping up the balance with any amount the passenger chooses,” it said.

“AFPI does not impose a minimum load, but the passengers have to ensure that there are enough funds on the card for the intended route,” it said.

The DOTr has ordered the enforcement of a cashless fare collection on public utility buses that ply the EDSA Busway route starting October 1, 2020.

AFPI said it is working closely with the DOTr and the public transport operators, for the continuous improvement of the cashless implementation in EDSA.

“AFPI is committed to supporting the initiative of the government to promote the safety and well-being of the riding public,” it said.

“AFPI was invited by the bus consortium and the DOTR sometime in June to propose a solution to which AFPI in its desire to help restart the country’s economy immediately responded,” it added.

AFPI said that in addition to the safety and health considerations relative to the pandemic, an automated cashless fare collection system supports the shift of the public transport industry to an improved vehicle dispatch and operations system.

“This is to replace the free for all operations caused by the “boundary system” compensation of the past,” it said.

Aside from buses plying the EDSA Busway, the Beep card can also be used to pay fares in LRT-1, LR2, and MRT3 train lines, and some point-to-point buses, as well as modern public utility vehicles.

Fare is deducted from the card once it is tapped at a fare collection machine.

AF Payments said Beep card holders can load at any of the EDSA bus stops or P2P terminals as well as in FamilyMart and Ministop stores.

Card holders can also load via kiosks or over-the-air loading (through BPI, PayMaya, EON by Unionbank, Justpayto, or Akulaku.)

A Beep card is valid for four years. -MDM, GMA News