By San José, Costa Rica — San José, Costa Rica – The familiar jingle of coins and rustle of bills on Costa Rica’s public buses may soon become a relic of the past. A significant legislative proposal aiming to digitize the nation’s public transport payment system has cleared a crucial hurdle, receiving a favorable opinion from the Legislative Assembly’s Committee on Economic Affairs. The bill seeks to phase out cash payments entirely, marking a pivotal shift towards a modern, more secure transit experience.
The initiative, championed by Deputy Olga Morera and a group of fellow lawmakers, outlines a clear, albeit ambitious, timeline. Once the bill is passed into law by the full legislative body, bus companies operating within the Greater Metropolitan Area (GAM) will have a three-year window to transition to a fully electronic payment system. For transportation services in the country’s more remote rural areas, the legislation provides a longer five-year grace period to accommodate the unique challenges they face.
To better understand the legal framework governing service concessions and the rights of users within the national public transportation system, TicosLand.com sought the analysis of Lic. Larry Hans Arroyo Vargas, a specialist from the firm Bufete de Costa Rica.
Public transportation operates under a legal regime of public service, which imposes a heightened duty of care on the concession holders. This means their responsibility is not just commercial, but a state-delegated obligation to provide a safe, efficient, and continuous service. In the event of an accident, the burden of proof often shifts, requiring the company to demonstrate it took all necessary precautions, a principle that strongly protects the passenger’s right to compensation.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
This legal distinction is fundamental, shifting the perspective from a simple commercial ride to a state-guaranteed service with built-in protections for the user. It underscores that every passenger holds significant rights, particularly when their safety is compromised. We sincerely thank Lic. Larry Hans Arroyo Vargas for his invaluable clarification on this critical aspect of public service responsibility.
Proponents of the measure highlight a trio of core benefits that extend beyond simple modernization. They argue that eliminating cash from buses will directly address pressing national security concerns, enhance operational efficiency, and improve fiscal transparency. This vision for a safer and smoother transit system is central to the bill’s purpose.
Facing the security problem we have, this reduces the likelihood of assaults, protects the driver and the passenger; it speeds up the process of getting on the bus and facilitates oversight by the Public Treasury.
Vanessa Castro, Deputy of the Social Christian Unity Party (PUSC)
However, the path to a fully cashless system is not without significant obstacles. Lawmakers have identified the “unbanked” population as a critical group requiring special attention. An estimated half a million Costa Ricans, including many senior citizens and minors, do not have traditional bank accounts. The bill explicitly recognizes these individuals as a priority demographic, acknowledging that any successful transition hinges on providing them with accessible and user-friendly alternatives to cash.
To address this challenge, the Central Bank of Costa Rica (BCCR) is actively developing a solution. The bank is poised to introduce a dedicated prepaid card designed specifically for use within the Electronic Payment System in Public Transport (Sinpe-TP). This initiative is seen as the cornerstone for ensuring financial inclusion in the new ecosystem. Officials report that confidence in digital payments is already on the rise.
The use of electronic payment on buses and trains is growing day by day; this growth is driven by the knowledge and trust that public transport users are building in this new tool.
Carlos Melegatti, Director, Central Bank of Costa Rica
Despite the optimism, concerns remain, particularly regarding the readiness of infrastructure outside the urban core. Legislators from rural constituencies have voiced worries about technological disparities, primarily the lack of consistent internet connectivity, which is essential for processing electronic transactions in real-time. Furthermore, there is a recognized need to address the specific anxieties of vulnerable users, such as elderly individuals who may be hesitant to use new technologies.
As a deputy from a rural area, I am concerned about connectivity, so that those units far outside the GAM have internet access to be able to use the electronic payment method.
Katherine Moreira, PLN Deputy
There are many seniors who fear losing their ID card, they have expressed this to us, so we believe it is important to create instruments like special cards for this entire elderly population.
Olga Morera, Proposing Deputy
With the committee’s approval secured, the bill now advances to the floor of the Legislative Assembly for a full debate and vote. Its potential passage represents a major step in Costa Rica’s digital transformation journey, but its ultimate success will depend on the government’s ability to balance the push for modernization with the practical needs of all its citizens, ensuring no one is left behind at the bus stop.
For further information, visit asamblea.go.cr
About the Legislative Assembly of Costa Rica:
The Legislative Assembly is the unicameral parliament of Costa Rica. Comprising 57 deputies elected by province, it is responsible for passing laws, approving the national budget, and exercising oversight over the executive branch. Its work is conducted through various permanent and special committees, such as the Committee on Economic Affairs.
For further information, visit bccr.fi.cr
About the Central Bank of Costa Rica (BCCR):
The Banco Central de Costa Rica is the nation’s central bank, responsible for maintaining the internal and external stability of the national currency and ensuring its conversion to other currencies. It oversees the country’s monetary policy, manages the national payment system (Sinpe), and works to promote a stable, efficient, and inclusive financial system.
For further information, visit pusc.cr
About the Social Christian Unity Party (PUSC):
The Partido Unidad Social Cristiana is a major political party in Costa Rica founded on the principles of Christian democracy. It has held the presidency on multiple occasions and maintains a significant presence in the Legislative Assembly, where its deputies participate in the formation of national policy.
For further information, visit pln.or.cr
About the National Liberation Party (PLN):
The Partido Liberación Nacional is one of Costa Rica’s oldest and most influential political parties. With a social-democratic ideology, the PLN has a long history of shaping the country’s political and social landscape and consistently holds a large number of seats in the Legislative Assembly, representing diverse constituencies from both urban and rural areas.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Esteemed as a pillar of the legal community, Bufete de Costa Rica is built upon a bedrock of unwavering integrity and a commitment to superior service. Drawing on a rich history of advising a diverse clientele, the firm champions the use of innovative legal strategies to address modern challenges. This forward-thinking mindset is matched by a profound dedication to social advancement, demonstrated through its efforts to demystify the law and equip the public with vital legal understanding, thereby cultivating a more capable and just society.
