Bengaluru’s public transport landscape is witnessing a digital transformation, with the Bengaluru Metropolitan Transport Corporation (BMTC) reporting a remarkable surge in UPI transactions for bus ticket purchases.
This shift follows the fare hike implemented in January 2025, which not only altered ticket prices but also redefined payment dynamics within the city’s bustling transport network. In just three months, UPI transactions for bus tickets soared from Rs 10.3 crore in December 2024 to an impressive Rs 35.5 crore by March 2025. This dramatic increase highlights a broader trend of digital adoption, spurred by the practical challenges posed by the fare revision. The fare hike, introduced in the first week of January, raised the baseline cost of bus journeys. Previously, passengers paid Rs 5 for the first two stages, Rs 10 for up to four stages, and Rs 15 for up to six stages. Post-hike, these fares were adjusted to Rs 6, Rs 12, and Rs 18, respectively. The new fare structure created a logistical headache for both passengers and conductors due to the need for small change, a common issue in daily transactions.
To address this, BMTC management intensified its efforts to promote UPI as a seamless alternative. The strategy involved ensuring UPI payment systems were installed on all operational buses, educating passengers and conductors about the benefits of digital payments, and closely monitoring daily transaction trends at the depot level. The results were immediate and impressive. By March 2025, nearly 40% of all bus tickets were being purchased through UPI, reflecting a significant shift in consumer behaviour. In terms of revenue, BMTC generated Rs 89.2 crore from ticket fares in March, with Rs 35.5 crore coming from UPI transactions alone. This compared to Rs 83.4 crore in February, with Rs 29.4 crore from UPI, and Rs 83.7 crore in January, where Rs 19.7 crore was paid digitally.
This digital uptake not only alleviated the issue of change but also reduced cash handling for conductors, streamlining the entire revenue collection process. Moreover, it facilitated easier cash remittances to banks, enhancing operational efficiency within BMTC. The rise in UPI usage also aligns with broader sustainability goals. Reducing the reliance on cash helps minimise the environmental footprint associated with printing, handling, and transporting physical currency. Additionally, the shift supports the creation of a more inclusive, gender-neutral, and equitable transport system by simplifying payment processes for all demographics. On average, BMTC now records 7.8 lakh UPI transactions daily, generating close to Rs 7 crore in revenue per day, including income from the Shakti Scheme an initiative providing free travel for women beneficiaries. In May 2025, BMTC generated Rs 2.9 crore daily from non-Shakti scheme fares, with Rs 1.2 crore attributed to UPI transactions.
This transformation not only reflects Bengaluru’s embrace of digital innovation but also underscores the city’s commitment to creating eco-friendly, sustainable urban spaces. As Bengaluru continues to evolve, the integration of technology in public transport promises a future where convenience, efficiency, and sustainability go hand in hand.
Bengaluru Shifts to Digital Payments for Bus Ticket
