The provider of Beep cards, AF Payments Inc (AFPI), is facing delays in the delivery of cards as Russia's invasion of Ukraine continues.

"Right now, we are anticipating a delay. But we are moving heaven and earth to be able to service the commitment based on the concession agreement given to us by the PTOs (Public Transport Operators)." AF Payments CEO JJ Moreno said.

AFPI is a consortium between the Ayala Group and First Pacific Group that provides contactless cards for rail lines and other public transportation.

The company is targeting to produce 9 million beep cards by the end of the year if there are no delays or issues encountered in the manufacturing of the cards.

AFPI said it is confident that they could still meet the demand of train riders until the end of the year, adding that they are looking for other manufacturers to fulfill the requirements of the transportation sector.

"We're sourcing, and by the end of the year, we are confident that we are able to supply the rails…. Medyo mahirap talaga (it's a bit difficult). We are looking at up to Europe, China… and unahan din… We are getting whatever we could get," Moreno said.

A Reuters report in March revealed that Ukraine's two leading suppliers of neon, a key ingredient for making microchips, stopped their operations as Russia attacked the country.

The stoppage casts a cloud over the worldwide output of chips, already in short supply after the coronavirus pandemic drove up demand for cellphones, laptops, and later cars, forcing some firms to scale back production.

"There are still cards out there, but it is more expensive and rare. We have to compete with our counterparts. I hope this is temporary and sooner or later we'll get this supply of the cards addressed," Moreno said.

The Department of Transportation is looking at AFPI and other contactless payments service providers to integrate into their cards the 20 percent discount for students in preparation for the resumption of in-person classes.

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Transportation chief Jaime Bautista had urged commuters to own stored value tickets to avoid the long lines and spread of COVID-19, especially during rush hours.

AFPI said its technology is ready to give discounts.

However, public transport operators themselves must conduct the vetting process.

AFPI said it only collects fares for the transport operators.

Moreno suggested that public transport operators partner with them and the schools for easy vetting.

The company said they could integrate Beep cards into school or company IDs.

The contactless card service provider said it plans to expand the use of Beep cards into another point of purchase in the next few weeks.

"Right now, there are only 4,930 points of acceptance for beep cards. But (in) the next few weeks, that will increase to 50,000. We are building an ecosystem… We are moving forward, moving like pretty much like the Octopus card," Moreno said.

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