With an investment of $6 million, a card payment systems will be installed on buses, with operations starting in April.
The system aims to prevent drivers having to carry cash, as passengers will only be able to use the service through prepaid cards.
Ruben Altamirano, vice president of the Regional Union of Collective Transport Cooperatives (Urecootraco) noted that "carriers will not invest money in the installation of equipment or issuing the cards, but rather companies interested in the business will do so.
Although in Colombia, Venezuela and Peru use of pre paid cards is widespread in Central America they are only in the initial stages of implementation.
Having successfully piloted in South America, MasterCard and Visa intend to introduce and expand the use of the prepaid card in Panama, where the use of this product is in an early stage, as well as the rest of Central America.
The three energy distributors in the country agreed to invest $4,2 million to implement a pre-paid energy system using cards.
The system, which has proven successful in the poor communities of Medellin, Colombia, is similar to the one used to recharge mobile phones trough pre-paid cards.
Clients could buy cards starting from $3 or $4 worth of electric power, and they would receive a numeric code that they can enter into adapted electricity meters in their homes.
Hospitals are offering a variety of pre-paid health plans with prices starting at $12.50 per month for the most basic.
The plans offered by different hospitals cover services of hospitalization, consultation and lab tests for patients of all ages.
Mario Mendizábal, insurance analyst, explains that the difference between these plans and an insurance product is that with pre-paid health plans, “the customer is paying in advance for future medical services and generally the companies offering the plans are medical institutions”.
For the next three years buses can be imported without paying tariffs, as a new bill came into force on Monday.
Called “Bill for Strengthening and Improving Public Transportation”, it allows mass transit association to import buses to replaces existing ones without paying imports tariffs and value-added taxes.
“In addition to waiving taxes for imported vehicles, it also removes levies on prepaid systems, fleet management tools, bus information services, GPS devices and digital recording equipment. Station technology will receive the same benefits but just for two years”.
It applies to public transportation buses, and in those departments where the prepaid system will be implemented.
Decree 21-2010, approved by Congress, establishes that transportation companies will be exempt from paying VAT and any other tariffs when importing new buses and micro buses.
Congressmen Roberto Villate regretted that not all businessmen were included in the initiative.
Bank Cathay and company “Productos y Servicios Diversificados” began testing the Transfácil system, after an $8 million investment.
They are currently installing a fiber optics network to transfer data from the buses to a monitoring central station, explained Gamaliel Chin, from the Union of Short Outer Urban Routes Transporters.
“800 units will be fitted to use the card system on April, and the entire 1.750 fleet should be ready by the end of 2010”, reported Elperiodico.com.gt. “On March 20 they will begin selling prepaid cards to consumers”.
Guatemala will install prepaid card systems on buses between 2009 and 2011 for $35 million.
The system aims for the bus drivers to avoid having to carry cash since the service will only be available through prepaid cards.
According to a note from ACAN-EFE in prensa.com, the 3 thousand buses that circulate throughout Guatemala City must be fitted with the necessary technology to recognize the prepaid cards.