No profiteering but chips short for beep
We vehemently deny allegations of profiteering by taking advantage of the current global shortage of chips and selling cards at higher prices
Daily TribuneWe vehemently deny allegations of profiteering by taking advantage of the current global shortage of chips and selling cards at higher prices
Stored-value or "beep" cards operator AF Payments, Inc. — a consortium of Ayala Group and the First Pacific Group — on Monday denied allegations of profiteering amid a chip supply shortage
"We vehemently deny allegations of profiteering by taking advantage of the current global shortage of chips and selling cards at higher prices."
"For the record, AFPI does not profit from cards sold to the public," AFPI president and CEO JJ Moreno said in a press statement.
Moreno also pointed out that the company only prioritizes the welfare of the riding public to provide them convenience in their daily commute.
Beep cards, which are widely used in rail lines, buses, and modern public utility vehicles, were reportedly sold at a higher price due to scarcity as the chip supplies used in manufacturing the cards dwindled globally.
According to Moreno, AFPI already spent P300 million since it started operations in 2015 to supply and subsidise the rail sector following its concession agreement with the government.
Last year alone, the company also allocated P9.8 million in card subsidies and another P48 million this year. In 2023, Moreno said subsidies are expected to clock in at P70 million.
"These subsidies come in the form of the difference between our card acquisitions cost and our selling price," Moreno said.
Sold at cost
"We purchase the card at around $2 to $2.60 or (approximately P114 to P148.50) and sell it to rail operators at P50. The PTO further subsidizes P20 and sells it to commuters at P30," he explained.
However, Moreno noted that in the bus, ferry, and retail sectors, which are not covered by the concession agreement, beep cards are sold at cost or at a price point that factor in the card cost and distribution cost.
