Working with Ncloud in Nepal

How smart mobility is changing public transport in Asia.

Project description:

Coseco’s partnership with asian transportation services is as long as Coseco’s existence. Our work in countries such as Nepal and the Philippines has created an open dialogue between transport and payment solutions.

Through Ncloud, Coseco offers its full suite of services to deliver on its contracts with public transport organisations in Nepal. The service is to implement contactless payment and automatic fare collection systems across transport services in Asia. Ncloud is currently serving three operators in Kathmandu with 200 buses and 10,000 smart card users. Ncloud recently entered into a contract with all bus companies in Pokhara, the local administration of Pokhara, Prabhu Bank and NIC ASIA Bank to implement contactless payment and automatic fare collection in Pokhara (800 buses), starting mid- August 2019.

Prabhu Bank and NIC ASIA bank will finance the contactless payment terminals which operators will use, and issue the smart cards that customers use to pay. Coseco delivers the SAAS-based platform for payment and automatic fare collection and supplies all terminals and payment cards to the local bank card issuer. In addition to this, it will offer data and fleet management services. Ncloud will earn a monthly service fee per bus.

There is potential for around 300 public transport operators with about 12,000 buses in Nepal.

The Challenges faced:

The Challenge With this project was to work in an around an environment that hasn’t  been focused on before. Meaning things like finding ways around some of the corruption taking place in the industry. Due to the lack of urgency that was placed on the importance of smart payment solutions, payment in Nepal’s public transport sector was done mainly  in cash. This meant there was opportunity for multiple forms of revenue leakage.

Employees duping customers into paying more, making it easier to take money away from the transport company.

After speaking with many on the issue the problems became clear: The public transport sector in Nepal needed a new solution for organised payment. Helping give a clear overview and organising all data needed for a safer environment in public transport.

Coseco’s Approach:

The Solution was AFC software system and devices. With this system the risk of violence, stealing and discomfort is significantly reduced. The customer knows exactly what they  are paying, and can pay this exact amount with ease. There is no need for negotiation  and customers and bus drivers alike will no longer be cheated out of their money.

The software also creates a safer environment for Woman, children and the elderly as it the cashless transaction causes for less interaction. Meaning these groups who can feel unsafe on public transport will be able to safely enter and exit the bus with no extra hassle.

Coseco has also used this as an opportunity to introduce the conductor service. This service is even included on Nclouds product list and is a service now easily provided. Meaning the driver can fully focus on driving whilst the conductor sorts any and all transactions. Keeping the system organised and safe.

The results:

This new system implementation continues to improve the Nepali transport system. The business model was even changed to fit the substantial changes that were happening. The change made it possible for the transport system to be safer and a more organised system. The implementation also caused for the following changes:

• An increase of efficiency on time and organisation
• Reduced risk/eradication of Revenue leakage
• Provides real time insights and overviews of daily revenue and usage

The success of this implementation has also caused for 800+ busses to be using the system, on 8 different transport systems in Pokhara. With the success this project has had it has also meant that big plans have been maid to spread to other cities within Nepal and hopefully also the rest of Asia.

Coseco Is excited to continue working with Ncloud on this new way of transport for Nepal. Watch an interview with founder Patrick Henzen to find out more.