Santiago metro operator creates unit to manage digital payments

Chile's Santiago Metro system has created a financial unit to oversee a new digital payment platform.

MetroPago will be authorized as a non-banking entity to manage payments of the new prepaid card, according to a filing with securities and insurance commission CMF.

In December, Chile's central bank amended the regulatory framework relating to the operation of the country's card market.

Among the changes is the easing of rules concerning the creation of partnerships between international card brands and local operators, thus paving the way for new brands to enter the market.

Watchdog Sbif has already given three non-bank entities the preliminary green light to issue prepaid cards.

DIGITAL PAYMENTS FOR TRANSPORT

Last month, Chile's transport and telecommunications ministry (MTT) announced a plan to implement a digital payment platform for the Santiago public transport system that would be tendered in 2020 and lead to an estimated savings of US$1.3mn per year.

Fares will be paid by scanning a QR code on a mobile phone or bank cards, and would allow users to transfer top-ups.

The MTT has planned a 36-month transition period with the four technology providers of the Transantiago Santiago public transport system - Metro, Sonda, Indra and AFT - as it draws up the tender.