Digital Finance

Integrating Digital Payment into City Bus and Train Ticketing Systems in Ethiopia

Ethiopia’s public transport system remains largely cash-based, resulting in inefficiencies, revenue leakages, and commuter inconvenience. Passengers often face long queues, lack of change, and security concerns due to the absence of a digital fare collection system. Introducing a digital payment system for city buses and trains will modernize fare collection, enhance transparency, and improve service delivery. It also creates opportunities for financial service providers and Fintechs to integrate transit payments with mobile money and banking services, supporting both urban mobility and broader financial inclusion.

Published By

Team Shega

Published On

30 June 2025

Copy link

This report explores the potential benefits and applicability of integrating digital payment systems into city bus and train services in Ethiopia, aiming to modernize fare collection, improve service efficiency, and reduce the operational challenges of cash-based transactions. The primary target audiences for this use case report are public transport authorities, financial institutions, fintech providers, technology companies in Ethiopia. By addressing the limitations of manual fare systems, including revenue leakages, long queues, and lack of transparency, digital payments can enhance commuter convenience and operational efficiency. A well-designed system would enable contactless payments via mobile money, NFC, and QR codes, while also supporting real-time transaction tracking, secure data handling, and integration with broader digital financial services.