Winnipeg Transit Seeks Modern Fare System to Enhance Payments

Winnipeg Transit has initiated a significant upgrade to its fare payment system, aiming to replace the current Peggo card with a more modern solution. The transit authority issued a request for proposals (RFP) on March 15, 2024, inviting bids to design and install a fare collection platform that accommodates payments via credit cards, debit cards, and mobile applications. This development comes in response to persistent concerns about the Peggo system, which has been in operation since 2016 and has faced criticism for long wait times for online payments and limited payment options.

The proposed system will enable riders to tap their bank cards or smartphones for fare payments, moving away from reliance on reloadable cards. Additionally, it aims to introduce account-based payments, potentially allowing for fare-capping—an approach that limits the maximum fare charged to users within a specified timeframe. According to Kirk Cumming, Transit’s manager of information technology, this RFP is designed to gather innovative solutions from vendors, stating, “It really gives the city’s broad goals in terms of fare collection technology and is sort of looking to get the responses from the different vendors to see what the newest technology has to offer.”

Winnipeg Transit is also addressing the issue of fare evasion, which the organization estimates costs between $7 million and $10 million annually. Cumming noted that although a detailed analysis of fare evasion causes has not been conducted, limited payment options contribute to the problem. Expanding payment methods could not only mitigate fare evasion but also potentially increase ridership, which has seen a decline. Laurie Fisher, Transit’s manager of finance, reported that ridership dipped to about 89 percent of 2019 levels, down from approximately 95 percent the previous year. This downturn has resulted in an $8 million revenue shortfall this year.

In addition to the fare system upgrade, Winnipeg Transit is grappling with challenges related to its aging bus fleet. The authority warned that without adequate funding to replace old buses, it may struggle to meet demand in the coming years. The end of the federal Investing in Canada Infrastructure Fund agreement will see the city’s annual capital funding for buses decrease from about $101 million in 2026 to between $23 million and $33 million from 2027 to 2031. Projections suggest that the fleet could shrink from 642 buses in 2026 to 479 buses by 2031, with a winter service requiring approximately 564 buses for reliable operation.

Fisher emphasized the urgency of the situation, indicating that “by 2028, based on what is needed for the winter service, there is a risk that we will not have enough buses to consistently provide scheduled service on a daily basis.”

As Winnipeg Transit moves forward with the RFP process, the authority anticipates recommending a vendor in the latter half of 2026, with implementation of the new fare system targeted for late 2027. The modernization of fare collection could significantly improve user experience and operational efficiency, while also addressing the critical issue of declining ridership and fare evasion.