Major financial technology players including GCash, Visa, and Mastercard are among two dozen companies competing for a landmark concession to modernize fare collection across the Philippines' public transportation network.
According to documents obtained from the Department of Transportation (DOTr), 24 firms participated in a recent market sounding session in Singapore for the proposed Philippine Automated Fare Collection System (PAFCS). The list includes global heavyweights Siemens Mobility, Hitachi Asia, LG CNS, and Cubic Transportation Systems alongside the prominent payment platforms.
Acting Transportation Secretary Giovanni Lopez confirmed the government is accelerating the procurement process, targeting Cabinet Committee approval through the Investment Coordination Committee by May.
"We are pushing for a fully interoperable system that would connect major rail lines, including MRT 3, LRT 1, LRT 2 and eventually, the Metro Manila Subway," Lopez stated during a recent interview. "It must be interoperable, interconnected."
The ambitious project aims to create a unified payment platform allowing commuters to use various cashless options including credit and debit cards, e-wallets, and other digital payment methods across the country's rail network.
The Asian Development Bank is advising the DOTr on the concession search, with bid documents expected to be published by June and the contract awarded by the fourth quarter of this year.
According to the agreement between DOTr and ADB, the selected concessionaire will be responsible for "development, operations and maintenance of the automatic fare collection system for all transport modes in the Philippines."
This initiative builds upon previous modernization efforts, including the 2014 award to the AF Consortium—a partnership between Ayala and First Pacific groups—that replaced magnetic ticketing systems with contactless technology across Metro Manila's rail network.
The DOTr has already piloted automated fare collection in select transport segments, including MRT 3 and public utility vehicles, as part of a broader transition toward integrated, cashless mobility solutions.