KNOXVILLE, Tenn. — Knoxville Area Transit said it is no longer recommending implementing an exclusively cashless payment system for its buses. It instead recommends buses accept exact change for fares, as well as cashless payments starting in 2025.
The transit system previously said it would host public meetings to connect with the community about a proposal to stop accepting cash for bus fares. It said payments would instead be done through a new "Katpay" system, which effectively creates online accounts for riders. They could load money into those accounts to then pay for fares.
Now, KAT is recommending riders be given the choice to either use Katpay or pay exact change for fares.
KAT said on Tuesday that it would still launch the Katpay system, which would also introduce fare capping — a policy that tracks rider usage and stops charging them after reaching a daily or monthly limit.
In the proposed system, customers would never pay more than $2 a day or $30 in 30 days, or $1 a day and $15 in 30 days for discounted rates. People would need to create an account, either online or in an app, and load money into Katpay. That can be done either online or in-person, at the KAT Customer Service Counter or at a retail location.
People could use Katpay to pay through the app or they can get a Katpay card to tap at a validator whenever they ride.
The board will hold a meeting to discuss its recommendation on Thursday in the Small Assembly Room of the City-County Building. The Katpay system will launch on Oct. 23 and if the recommendation is approved, KAT will start a ticket buyback program on the same day.
Dec. 2 would be the last day to buy paper tickets at the customer service desk if the plan is approved, and people would need exact change for fares starting Jan. 2.
KAT said the proposals come after its fare boxes were deemed obsolete by their manufacturer, and are no longer supported. The new system would also quicken the boarding process and allow it to implement the proposed fare-capping system, according to a release. The changes would also make the transit system more efficient, KAT said.
Later, KAT said it may also help it implement rear-door boarding and reduce maintenance and labor costs.
