EDSA Busway Ticketing - Echoes from the Past

In time for the Halloween season, ghosts of the past are rising. I still have nightmares thinking of our attempts to build an automated ticketing system for the EDSA busway.

I was CEO of AF Payments at the time the EDSA busway was established, and while doing business in the mass transit industry of the Philippines was tough, the EDSA busway project took the biscuit.

Now I am reading (1, 2) that the DOTr is at it again.

The History

The EDSA busway (or carrousel) was established to ease the pressure on the MRT-3 system during the pandemic. I have no idea how crowded buses and non-existent or narrow sidewalks and "bus stops" would have made anything better. But, during the pandemic, any action was considered better than no action, regardless whether it helped or not.

The idea was simple. I had previously heard some Swedish consultants talk about it. They thought the best way to solve the traffic problem on EDSA would be to reduce the number of car lanes from three to two and establish a dedicated bus lane on the left side of the road.

The bus lane was separated by traffic barriers and bus stops were established near the pedestrian bridges which already connect the overhead MRT-3 station to each side of the road. The bus stops had no shelter, no electricity and getting to them was often a risky maneuver.

Initially, the DOTr said that they are looking for one consortium of city bus operators who would be contracted by the government to provide and operate the buses. If you know how the bus operators are set up, you probably realize that it would have been easier to give a liquor license to a consortium of the five mafia families of New York in the 1920s.

Sure enough, the first consortium was created which effectively drew a line between the "competing" groups of bus operators. There was lots of talk about this consortium getting the franchise, but unsurprisingly nothing was ever made official.

The remaining bus operators created another consortium. For all I know, there may have been more. In the end, the original intention to give the franchise to only one consortium was ignored, with the predictable chaos in the implementation of the project.

Our approach was to offer a solution that combines beep™ card acceptance with pre-paid QR code tickets (see (3)).

There was a constant stop and go in the project. One day we were told there will be a mandate to switch to cashless operation "next week", the next day the government implemented a fare waiver. The tiny paper tissues in Filipino carinderias had more value than the signed contracts with the "consortiums". And, new AFCS providers suddenly offered competing solutions that were too good to be true, and they weren’t.

When I left the company, the project was still semi-alive, but I understand they have given up on it years ago.

What Solution Would be Best?

The bus lane runs in parallel to the overhead MRT-3 tracks and the bus stops are often close to the MRT-3 stations. MRT-3 is using the Transpo™ - beep™ system, which is based on traditional offline stored value technology.

About 60% of passengers would already have a reloadable beep™ card and would be willing to use it on the bus, because the passengers using the buses will be the same people who also use the trains.

The remaining customers would rely on the single-journey beep™ card or want to pay cash. This is the way it has been for the operation of the AFCS on the light rail systems, and that is the way it will be on the buses.

The number of passengers willing to keep sufficient load on their beep™ cards for a bus ride will probably be less than for train rides.

Regardless whether a passenger already has a beep™ card or not, the bus AFCS must also support QR code ticketing or outright payment. GCash™ is already experimenting with post-paid and pre-paid tickets on MRT-3.

You should not assume that QR codes will solve the problem of single-journey ticket users though. People who prefer buying single journey tickets either do not have a smartphone, or they do not have enough money in the e-wallet account to make post-paid ticketing work reliably.

Finally, there are general purpose payment cards with EMV chips. The problem here will be fare calculation. It is unlikely that passengers will consistently tap their card on exit, and charging the maximum remaining fare would create an operational and PR nightmare for the AFCS operator.

Challenges of Implementing a Cashless AFCS

  • If the bus AFCS is counting on existing plastic cards, there must be a load infrastructure within the bus stops. Load kiosks in shopping malls nearby or in the MRT stations above will not solve the problem. Passengers simply do not go anywhere else to load their cards before getting to the bus stop!

    Passengers will absolutely not go up to the MRT-3 station to load their card or to buy one. The only realistic way to make stored value fare media work would be to come up with vending and load machines in the waiting areas of the bus stops. The vending and loading machines will require cash management and regular maintenance. They also need to be cheap enough to justify installation of a large number in all stops.

    The best solution will be loading directly through the NFC interface of the passenger’s mobile phone, or even better, dispense with the plastic card altogether and make the NFC phone the beep™ card.

    Before I left the company, I spend some of my personal time building a super cheap load station. The project was abandoned, but I was allowed to make some of the software publicly available (4). In hindsight, I think it was the only shot we had to establish the beep™ system outside of train stations, but it was a loosing battle against mobile phones with NFC interface, QR codes, general purpose payment cards and the general opposition to using any AFCS (see (5)).

  • Not everybody will have a beep™ card, a GCash account with money or a general pupose payment card. Anywhere between 20% and 40% of passengers show up with cash, and cash only.

    That means, the AFCS must have a way to issue single journey tickets at every bus stop.

    When I was involved, the bus stops had no space for a proper teller booth. There was no electricity and no shelter in case of rain.

    The bus operated from very early morning to late at night. We had to organize multiple shifts with cash collection, ticketing devices, enough charged batteries and so forth. Any attempt to get help from any of the bus operators or the government failed. It was simply too expensive to operate!

  • There was zero buy in from the bus operators. They oscillated between going cashless and firing all their conductors overnight to outright refusing to get involved in fare collection in any shape or form.

    Even installing the bus validators became a cat and mouse game of us deploying the installation teams and the operators moving buses at the last minute or closing depots right when our teams arrived. I was never quite sure whether the operators genuinely did not know where their buses were, or whether they were deliberately obstructive. It was likely a combination of both.

  • Timelines (see Are Government Mandates Mandatory?)

  • Cost and revenue. The whole exercise was built on two pillars: a government mandate and cost reduction for bus operators. I am getting into some detail on both in the text below. Fact is, neither ever materialized.

  • Tap-in/Tap-out Fare Calculation

    It will be a perpetual challenge to get passengers to tap or scan their fare medium on entry and on exit. But it is not just the willingness of passengers to follow a simple process.

    Most of the buses are ordinary coach buses with one door and a narrow entry. Many times, passengers will rush in when other passengers still alight.

    As a remedy, bus operators usually insist on charging the maximum ticket price as if the passenger had gone all the way to end of the route. In most cases, passengers will bitterly complain and before the learning effect sets in, the government will try to score browny points with the public by banning the practice. This in turn will dampen the enthusiasm of the operators for the AFCS even further.

Are Government Mandates Mandatory?

Make absolutely sure you understand whether an AFCS has actually mandated by the government. Look into the future, and put yourself in the shoes of a company that has invested a lot of money based on what they believed to be an enforceable mandate. From this point of view, read the press releases, department orders and other statements again and ask yourself whether any of this would hold up in court.

When you read the government statements, look for enforcement mechanisms. Ask whether these mechanisms actually exist in writing. Find articles and official documents from the time the Jeepney modernization project was announced and compare the statements from the past with the current statements.

I am sure you will find that what sounded like a solid plan on which the public transport and AFCS industry can rely on for their investment decisions, turns out to be full of unenforceable aspirations. And even if the plan was solid, it was completely unrealistic and eventually ignored.

Bus Validators

Tiny Filipinas who have been waiting in the dark and heat for an hour to get on a bus are a force to reckon with, and can do more damage to a bus validator than a body builder with a sledgehammer.

The environment is unbelievably hostile, and the bus driver or conductors are not your allies protecting your equipment.

External cable connections must be so tough that you could tow the bus with it in a pinch. And the casing of your device must be able to withstand a bus rolling over it - repeatedly.

Make sure the electrical connections of your validator within the bus are done by bus operator personnel. Some of teh buses are a bit dodgy and you do noit want to be the one holding the can when one of them goes up in flames. Documentation with lots of names and signatures are key!

Of course the validator must work under all conditions, and it must do so very fast. Take into account that no amount of signage will prevent passengers tapping the card in the wrong place or holding the QR code at an angle at which no camera could recognize it. You better plan and budget for somebody to stand next to bus who will help passengers to find the big sign "TAP HERE", and to hold their card to the reader for a bit longer than a millisecond.

Validators that require any amount of intervention by the driver will fail. Even the simple act of switching it off before stopping the engine will be too much. Validators that cannot determine the current stop with absolute certainty every time, either with GPS or a beacon, are a waste of time and a recipe for the failure of the whole project.

Validators must be able to run long enough on internal battery power to reliably upload transactions and download configuration and stop list files. Don’t be tenpted to buy some cheap 2G stuff from China. LTE or even better 5G are a must.

Reality of Bus Operations

In most cities around the world, you will find one bus operator with one bus model (or bus manufacturer). City buses in Manila on the other hand are a hotchpotch of coach buses that were never intended for use as a city bus.

Be prepared for every bus to be different. There will be no mounting solution for your bus validators that works consistently in all buses, not even for all buses of one single operator.

Take into account that the same bus is not always operated by the same bus operator. I believe the department of transport mandates that buses must be assigned to one operator and one route, but in reality that is rarely enforced. Operators borrow buses from each other or deploy buses on other routes, meaning that your expensive bus validator might end up on a bus that is getting a bunch of school children to their science excursion. Incidentally that might also be one of the reasons why fllet management and vehicle tracking has been mandated for years but never caught on.

That practice also raises the question of configuring a validator for the correct operator, which in turn will determine who will receive the fare intake. Getting the clearing and settlement wrong is the absolute worse scenario and will bring the project to a standstill very quickly.

Buy-in from Staff

Over the years, drivers, conductors and bus operators have developed a finely tuned system of "revenue allocation".

Bus operators like to talk about "shrinkage", which is ticketing revenue that staff is withholding from the operator. This sounds bad, but the reality is, that the "shrinkage" is an integral part of staff compensation which is offset by the measly salaries paid by the operator.

Introducing an AFCS is upsetting the balance. Not only is there less opportunity for "shrinkage", there is also the problem of changing the salaries to make up for the shortfall.

None of this is even taking into account the prospect of staff reduction. If, for the transition period, your project depends on existing staff, who already knows that they will lose their job, then you should expect active sabotage of your project.

Without a complete redesign of the business model, staff will beat any AFCS into submission. Bus drivers will refuse to operate the bus validator. They will "forget" to switch on the device, claim that it did not work, rip out cables, or actively badmouth the system when passengers ask for help.

Pointers for a new Business model

  • An adjustment of the salary and role of the driver.

    Drivers do not like to be the only staff on the bus. They also currently share the "shrinkage" with the conductor,and an AFCS would therefore reduce their monthly salary.

    Drivers are usually a bit older than the conductors and are not comfortable with new technology. Even simple tasks like setting up the bus validator could exceed their abilities.

  • A decision whether there is a need for conductors and what their role in the new system could be.

    Conductors are part of the family, sometimes literally. Firing the conductor might not be something the operator is prepared to do.

    Conductors are younger and may be amenable to take on new jobs. Unfortunately, any new jobs during the transition to an AFCS may not be as "interesting" as being a conductor, and the business case of the AFCS may depend on those jobs to disappear soon.

  • Sufficient incentives for all staff to keep the AFCS working.

    The best approach would be to turn redundant staff into maintenance and operations staff for the AFCS. Eduction is key, and who knows, maybe you can turn conductors with little eduction into AFCS specialists with much better salaries and career prospects.

  • A realistic and simple business case for the operators.

    It will not be enough to rely on a government mandate to make operators "want" an AFCS. They have ignored more government mandates and deadlines than you have forgotten wedding anniversaries.

    It is also not enough to point out that an AFCS will improve convenience and service for passengers. They know that everybody will have the same AFCS and therefore there is no competitive advantage. That means the organic growth of passenger numbers, if it materializes at all, will happen with or without an AFCS.

    Unfortunately, the only straightforward business case must be based on cost reduction, which means reduction of workforce and prevention of "shrinkage", both of which will negatively impact the people working for them. Higher salaries will neutralize the "shrinkage" reduction, and the AFCS may generate the need for additional staff elsewhere which would offset the cost reduction from staff redundancies.

References

OpenClipart, “Man with a Crutch.” https://freesvg.org/1545297774 , Jul. 2020, Accessed: Oct. 26, 2026. [Online].

(1) R. C. M. D. Cruz, “EDSA Busway goes cashless by December, DOTr says.” https://www.facebook.com/share/p/1EAGZuz4EL/ , Oct. 2026, Accessed: Oct. 24, 2026. [Online].

(2) I. Business, “Biz group seeks return of P1.76-B EDSA Busway funds.” https://business.inquirer.net/617316/biz-group-seeks-return-of-p1-76-b-edsa-busway-funds , Oct. 2026, Accessed: Oct. 24, 2026. [Online].

(3) AF Payments Inc., “QCAT GitHub Repository.” AF Payments Inc., 2025, Accessed: Nov. 05, 2025. [Online]. Available: https://github.com/afpayments/QCAT_QR_TICKETING_STANDARD.

(4) I. Noka, “Library for managing CBA9 Banknote Validators.” https://github.com/ingonoka/cba9-driver , Mar. 2024, Accessed: Oct. 26, 2026. [Online].

(5) I. Noka, “AFCS in the Philippines - Why no progress?” https://afcsblog.ingonoka.com/post/afcs-ph-why-no-progress/ , Sep. 2025, Accessed: May 16, 2026. [Online]. Available: https://afcsblog.ingonoka.com/post/afcs-ph-why-no-progress/.