The Department of Transportation (DoTr) is targeting the award of the Philippine Automated Fare Collection System (PAFCS) concession contract by the fourth quarter of 2026. The bidding process for the project is expected to commence in the third quarter under the public-private partnership programme. The project has an estimated cost of approximately PHP9.5 billion, subject to approval by the Investment Coordination Committee.
The PAFCS project aims to establish an interoperable and secure fare collection system covering rail, bus and future transport modes across the Philippines. The scope includes the development, operation and maintenance of the Central Transit Acquirer System and Central Clearing House for existing and future rail lines as well as road-based public transport systems. The proposed open-loop fare collection platform will support multiple fare media including Beep cards, Mastercard, Visa, QR codes and smart devices. The system is intended to replace the current closed-loop structure under which the Beep card remains the primary fare payment medium across rail networks.
The project forms part of broader efforts to modernise public transport ticketing infrastructure and expand interoperable digital payment systems nationwide. The current automated fare collection concession operated by AF Payments will expire in December 2027. The DoTr recently conducted a market-sounding exercise for the project, attracting participation from more than 50 local and international firms from countries including Japan, China, Singapore, South Korea, India, Indonesia, the United States and several European markets. Authorities stated that the upgraded fare collection platform is intended to support wider participation by financial institutions and payment service providers within the transport payments sector.