Enabling Costa Rica’s Journey Towards a Cashless Society with Open-Loop Payments

In May 2023, Littlepay collaborated with Banco Central de Costa Rica (BCCR) to launch a nationwide cEMV open-loop payment solution across Costa Rica’s extensive public transit system. Designed to support Costa Rica’s cashless strategy, this project tackles long-standing issues of cash dependence and fare evasion. With around 600 million annual transactions in transit, the adoption of contactless payment technology represents a significant transformation for Costa Rica’s 5 million residents and 5,000+ transit vehicles.

Objectives

The project’s main objective was to support Costa Rica’s cashless society initiative by enabling open-loop contactless payments for public transit. The goal of implementing a cEMV system was to reduce reliance on cash and create a more efficient, user-friendly experience for the country’s public transit riders. At the same time, it alleviated transit operators from cash-related issues like fare evasion, driver fraud, and inefficiencies in fare collection operations.

Challenges

Despite past efforts, Costa Rica’s public transit system remained fully heavily reliant on cash, contributing to fare evasion, driver fraud, and operational inefficiencies. Attempts at electronic ticketing had fallen short over the past 15 years, making it challenging to achieve the country’s long-term cashless ambitions. Without an effective cashless payment system, transit operators faced significant financial risks and inefficiencies.

Solutions

Littlepay implemented its contactless payment transit solution tailored for BCCR, which included advanced risk management features to address fare evasion and fraud and an innovative acquirer-switching system. This allowed for dynamic selection
between two local acquirers – BAC and Banco Nacional – based on competitive pricing and issuer compatibility, optimising costs for transit operators. As a result, operators can provide a secure, seamless payment experience for riders and work towards the broader objective of a cashless Costa Rica.

Littlepay’s involvement has been fundamental to the successful development and implementation of the National Electronic Payment System for Public Transport (SINPE-TP). As a key actor within the value chain that enables payment transaction processing, Littlepay has contributed with a high level of specialised expertise and knowledge from countries at the forefront of such technological development initiatives, thereby contributing to the digitalisation of payments and the modernisation of public transport in Costa Rica.”

Carlos Melegatti
Director of the Payment Systems
Division of the Central Bank of Costa Rica

Results

Meanwhile, monthly transactions have steadily increased, reaching 1.8 million in February 2025 — a 256% rise from February 2024 and 596% from February 2023. cEMV adoption has grown from 0% to 30% on enabled devices, with projections pointing to 60% in 2025. This shift supports Costa Rica’s cashless goals while improving cost efficiency and reducing fraud. With less cash handling, operators now benefit from tighter control over fare collection and greater alignment with global digital payment trends.