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Manila Bulletin devider Business devider Banking & Finance devider Goodbye queues? LRT-1, LRT-2 cashless system starts sooner than expected

Goodbye queues? LRT-1, LRT-2 cashless system starts sooner than expected

Published Nov 6, 2025 10:03 am

At A Glance

  • HONG KONG — Time-consuming commuter lines in Metro Manila's public rail systems could soon be reduced as the Bangko Sentral ng Pilipinas (BSP) is rolling out, sooner than expected, a cashless fare payment system in Light Rail Transit (LRT) 1 and LRT 2 lines.
HONG KONG — Time-consuming commuter lines in Metro Manila’s public rail systems could soon be reduced as the Bangko Sentral ng Pilipinas (BSP) is rolling out, sooner than expected, a cashless fare payment system in Light Rail Transit (LRT) 1 and LRT 2 lines.
During the Hong Kong Fintech Week 2025, BSP Deputy Governor Mamerto Tangonan told Manila Bulletin that while the government has committed to introducing the upgrade in LRTs, it is likely to happen this November.
Lito Villanueva, executive vice president at Yuchengco-owned Rizal Commercial Banking Corp. (RCBC), said this initiative encourages commuters to adopt digital payments in transport.
RCBC is the lead bank among the participating banks for this development, according to Tangonan, Head of the Payments and Currency Management Sector.
While still unknown to some commuters, all banks and e-wallets are compatible with the turnstiles.
“All the other banks and e-wallets are participating because of interoperability. So that’s what the BSP has insisted on since the start — it has to be interoperable. We don’t like proprietary solutions, closed loops,” Tangonan said.
To note, the Department of Transportation (DOTr) has issued the standard outlining wide coverage, including the stored value of beep cards, QR codes, and tap cards.
On the investment front, Tangonan deferred to the DOTr and the private sector entities involved. He, however, asserted that it has never been a costly transition.
Villanueva said the setup for Phase 1 would follow that of the MRT 3, wherein only one turnstile is specially dedicated to cashless payments. However, replacing all the stored-value-card-only turnstiles is also part of this phase.
Meanwhile, Tangonan said if the new methods are “working well” and volume is increasing rapidly, these cashless payment methods could also be integrated into the bus carousel, beyond the LRT and Mass Rapid Transit (MRT) lines.
Tangonan earlier said the move to adopt cashless payments in the fare collection system is also aimed at prompting more unbanked Filipinos to open bank accounts and transact digitally.
Reports also indicate that these efforts would complement the measures taken to address the shortage of stored-value beep cards. Three hundred additional beep cards were released in August to cover all stations across all transit lines.
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