A brief study on why Sajha Yatayat Smart Payment Failed.

1. 1
CHAPTER I
INTRODUCTION
1.1 Background of the Study
Electronic ticketing in public transportation based on smart cards is gaining momentum
worldwide. It is widely used recognized that smart card can deliver benefits to passenger
and public transportation operators through time saving, increased travel convenience,
more flexible ticketing, lower administrative cost and better marketing information. The
implementation of smart card system is, however, a complex process that includes legal,
economical and technological issues; implementation can thus come at a considerable
cost.
The concept of smart card payment is introduced in Nepal by Sajha Yatayat (est. 1961) in
July 2015 at Kathmandu Metropolitan city. With the help of Nuspay International
Incorporation and financing partner Nepal bank limited Sajha Yatayat became able to
introduce smart card system in Nepal. The plan was blue printed on 2015 but with some
technical issues it was abandoned. Later the plan was executed and put into practice on
Feb. 7, 2019; however distribution of card was dates a week later. Till date there are more
500 commuters who have taken the Smart Card. (source: http//www.sajhayatayat.com.np)
This study has been conducted on the basis of commuters’ feedback. The study is done in
order to understand why smart card is not so much popular as people as moving towards
cashless transaction.
1.2 Statement of Problem
Sajha Yatyat launched Smart Card system for payment in their buses in Kathmandu
Metropolitan City, where most of the people are educated, smart and are techno friendly
at their own way. Increasing globalization and technological advancement results
smartness in every part of our life (Chau, P. Y. K. and Poon, S. (2003)). Sajha Yatayat in the
same way catch the trend of people being cash less and loving cards. Most of the time
people in Kathmandu use cards for the transaction. Feeling the importance, Sajha Yatayat

2. 2
introduced Smart Card for the convenience of the passenger but the concept could not run
much longer or did not became able to attract the public. In spite of various advantages
the security risk, time consumption, technical error and adaption failure population made
the Smart Card system Unpopular.
1.3 Objective of the Study
The objective of the study is:
 To identify the cause of Smart Card payment failure in Sajha Yatayat.
1.4 Research Question
 What are the causes that made Smart Card Payment failure in Sajha Yatayat?
1.5 Scope of the Study
Sajha Yatayat had tried to implement the smart ideas in public transportation by using the
card for the payment where use of cash would be eliminated. But with the certain
probable reasons it has been running off the race pitch. The main objective of this
research is to identify the cause of smart card payment failure in Sajha Yatayat.
In spite of the significant effort, there were many limitations of this research study as it
was conducted within a limited time frame. It was very hard to make people speak and
talk about the card system as hardly few know about that. The research covered almost all
age group of people however only 28 samples were taken randomly and asked questions,
which takes 3 days for the collection of data. The samples were taken from Kathmandu
and Lalitpur city only.
This report covers only the insight of the commuters towards the reason behind failure of
smart card payment in Sajha Yatayat. Yet the insight of the concerned department and the
organization had to be covered but could not happen.

3. 3
CHAPTER II
LITERATURE REVIEW
2.1 Thematic Review
Smart cards are used for a number of different transportation applications, among which
ticketing is the most widespread. However, despite being invented more than 30 yrs ago,
the history of smart cards is littered with a number of spectacular and cost failures. The
last 15 yrs have been seen growing number of smart cards scheme being launched, many
of which are a result of the success of large scale electronic ticketing scheme in Asia
(2004). This has led an increased interest in investigation into the benefits of the cost of
smart card ticketing for the public transport. (Pahunja, IJCSMC, Vol 3)
However, the last 15yrs of smart card growth does not seem to have any impact in
Nepalese market. People still are not aware and knowledgeable about the use of smart
card in public vehicle. The initiation taken by Sajha Yatayat has almost become failure as
the vehicles are almost full every time but commuters are still less who took card for the
travelling (Meng & Xiong, 2004).This could be because of people’s awareness towards
smart system or the issues related with security or because of people’s perception or
because of pace of technology adopted creating time consuming and hectic.
Welde (2012) conducted a research on “Are Smart Card System Profitable” where data
were collected in cooperation with Public Transportation System, Norway. The
methodology Welde used is Quantitative method as CVP analysis has been done to
obtain the result. Simple random sampling has been used for the collection of data. The
research has positive findings as the smart cards have positive net present value. A part
from that the use of smart cards saves the huge time of passenger.

4. 4
CHAPTER III
RESEARCH METHODOLOGY
3.1Research Design
This research is descriptive in nature. The study describes the cause of payment failure in
Sajha Yatayat. Many controversial cases against research can arise in the study; however
research is fully based on the views and level of understanding of the commuters who
regularly travel via Sajha Yatayat. Possible biasness is best tried to minimize. Thus,
research had been conducted to identify the cause of smart card failure in Sajha Yatayat.
3.2 Sample Design
Through simple random sampling method of data collection, 25 commuters were taken as
a sample for the research. People with different age level and literate level have been
taken to obtain their perception towards the smart card payment. Some structured
questions and feedback through the users was used during interaction with different
commuters.
3.3 Sources of Data
The research was based on the information gathered from both primary and secondary
sources have included qualitative data. Primary data was collected by the interaction with
the various commuters. Whereas, secondary data was collected through various publish
journal and website by using internet.

5. 5
CHAPTER IV
DATA ANALYSIS AND PRESENTATION
This chapter presents the data presentation its interpretation and discussion over findings.
The data are collected from 28 questionnaires completed by Public vehicle commuters.
Collected data was analyzed to determine how the sample of the research responds to the
items under investigation. Descriptive statistics is employed to analyze the collected data.
The data are based on research objectives and on the cause of Smart Card payment failure
in Sajha Yatayat.
4.1 Respondent Profile
This part represents the background of the respondent who took part in the study. The
purpose of this background is to find out the response and experience of the people who
are directly benefited by the service of Sajha Yatayat. The demographic characteristics of
the respondent are categorized by age, sex and occupation.
Response by Age
Source: field survey (2020)
Fig 4.1.1 Age Based Respondent
Fig 4.1.1 shows that out of 28 respondent, 42.9% respondent are of 20-25 yrs, 32.1%
respondent are of 25-30 yrs, 17.9% respondent are 30-35 yrs and 7.1% are 35 yrs and
above.
43%
18%
32%
7%

6. 6
Response by Sex
Source: field survey (2020)
Fig 4.1.2 Sex Based Respondent
Table 4.1.2 shows that out of 28 respondent, 42.9% respondent are Male and 57.1%
respondent are Female.
Response by Occupation
Source: field survey (2020)
Fig 4.1.3 Occupation Based Respondent
Fig 4.1.3 shows that out of 28 respondent, 60.7% respondent are students, 14.3%
respondent are teachers, 10.7% respondent are government staffs and 14.3% respondent
are others.
43%
57%
61%
14%
11%
14%

7. 7
Response by User
Source: field survey (2020)
Fig 4.1.4 User Based Respondent
Fig 4.1.4 shows that out of 28 respondent, 67.9% respondent use Sajha Yatayat, 32.1%
respondent don’t use Sajha Yatayat.
Response by Suggestion
Source: field survey (2020)
Fig 4.1.5 Suggestion Based Respondent
Fig 4.1.5 shows that out of 28 respondent, 39.3% respondent suggested to use card and
cash system side by side, 32.1% respondent suggested to conduct campaign to aware
people about service, 10.7% respondent suggested to allure with multiple benefits and
17.9% respondent suggested that Sajha Yatayat should adopt mobile payment system
instead of card.
68%
32%
39%
32%
11%
18%

8. 8
4.2 Findings and Discussions
Some of the major findings of the determining factors on cause of smart card failure in
Sajha Yatayat are as follows:
 Out of 28 respondents, 42.9% are male and 57.1% are female, which shows that
majority of respondent are female.
 Out of the respondent categorized into age, majority of them are between ages of
20-25yrs.
 Majority of respondent were students.
 Most of all respondent use Sajha Yatayat as their preferred vehicle.
 Majority of the respondent suggested that Sajha Yatayat should use card and cash
system together.
 Whereas, second majority of people suggested to conduct awareness program to
aware people about the services.

9. 9
CHAPTER V
CONCLUSION
5.1 Conclusion
The purpose of this study is to investigate because that made the smart card failure in
Sajha Yatayat. To determine a goal survey was conducted among the commuters of Sajha
Yatayat. The research helps to study the preference of the commuters towards the Smart
Card payment.
In order to achieve the purpose, different sample were used to gather information and
later were gathered for the final information. The total sample size of the study is 28.
Questionnare was used as instrument for the survey. The research design used in the
research is descriptive in nature.
Sajha Yatayat has taken very good initiation of introducing the Card payment system in a
public vehicle. However is does not became able to successfully regulate the system and
go along with their plan it was a good start in the history of Nepalese public vehicle
context.
Sajha Yatayat these days grew itself very forcefully as it already starts its route almost
everywhere inside valley and some outside valley also. Its going popularity show how
well and comfort is its service and how much people trust. But instead of all these, Sajha
Yatayat could not effectively implement the Card Payment system in its vehicle.
Mostly people are unaware about the payment system. People who are educated enough
and prefer to do transaction via cards in their day to day life less often use Sajha Yatayat
as their preferred vehicle. A group of female concluded that “we cannot ensure Sajha
Yatayat comes when we go to college and offices, there are only limited vehicle. This
limits us and out of ten times we ride other vehicle seven times. So having Card is not
effective”.
A group of college students (Bachelors and Masters Level) concluded that, the concept
that introduced is excellent but we cannot trust the technology that Sajha Yatayat is
offering. There can be technology error and if that happens there is no any solution

10. 10
immediately which puts on more complexity. We are moving towards mobile payment
everywhere.
Khalti, E-sewa and other application allows us to pay from the mobile phone but Sajha
Yatayat is not catching trend and gone off the cycle and introduced Card payment.
Instead of Card system if mobile payment was launched at least with students and
youngster, it would have been popular.
People who are aware about cards but never used said that they think it will consume
time on transaction when lot people use it. People who used it complained that not every
route has the system and even those routes which have card system do not have frequent
flow of vehicle. They use their card only once in an unknown day. So increasing
popularity of Sajha Yatayat cannot able to attract public to change their behavior from
cash to card as most people prefer , finds easy and trust the cash system of payment.