Yerevan’s recent overhaul of its public transportation system seems more like a calculated disruption than a genuine improvement. What was promoted as an upgrade to the city’s transit infrastructure is now unfolding as a tightly controlled, potentially exploitative maneuver that risks bringing Yerevan’s transportation network to a halt.
On November 1, Yerevan Municipality introduced a mandatory payment change for passengers using MAN, ZhongTong, and GazelCity buses. Commuters must now use a 100-dram coin or a QR code payment system, managed by a private company, effectively eliminating the flexible cash payments that residents relied on. This change, part of a larger fare increase and payment modernization effort, has frustrated Yerevan’s citizens, restricting them to inconvenient and limited payment options—no other coins or cash payments are accepted.
Additionally, the Karen Demirchyan Metro discontinued token payments at the end of October, further complicating the system by requiring all passengers to adopt digital payments. This sudden shift has alienated many residents who relied on cash, leaving them unprepared or unable to adapt to QR codes or other digital methods. These changes were implemented with minimal public education or support, resulting in widespread confusion and unpreparedness among the city’s residents.
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Requiring passengers to pay exclusively with 100-dram coins or QR codes is not only restrictive but may also violate legal standards. According to Article 41 of Armenia’s Law on the Central Bank, all currency issued by the Central Bank is legal tender, giving citizens the right to pay with any denomination. By limiting payments to 100-dram coins and QR codes, Yerevan Municipality may be infringing on this right—an overreach that disregards Armenia’s legal protections for cash payments.
Despite an estimated 34.6 million 100-dram coins in circulation (around 10 coins per resident), the sudden demand has made them harder to find, further burdening citizens who need exact change for each trip. This rigid approach has only amplified public frustration, exposing serious flaws in Yerevan Municipality’s strategy.
TelCell, the private company overseeing QR code payments, has also drawn significant criticism. Its terminals have been unreliable, with reports of machines taking money without issuing tickets, leaving passengers without proof of payment and at risk of penalties. Moreover, TelCell’s monopoly status raises questions about fair competition and transparency in the contract process, with reports of contract violations suggesting corruption and lack of accountability.
TelCell’s involvement also raises serious privacy concerns, as citizens’ personal and banking data is funneled through a private, minimally regulated entity. This situation has sparked widespread unease over data security and transparency, with little clarity over who controls the information and how it is used.
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Municipality’s new transportation policy has further overlooked the needs of vulnerable groups, such as the elderly and minors. Without clear provisions for these groups to navigate the new system or manage QR code payments, the policy imposes unnecessary burdens on Yerevan’s most vulnerable residents, exposing the policy’s lack of accessibility and inclusivity.
What Yerevan Municipality laims as a “reform” of Yerevan’s transportation system increasingly appears to be a calculated move to limit payment flexibility, bypass legal norms, and prioritize private interests, all while alienating the city’s residents. As technical failures persist, legal questions remain unanswered, and vulnerable groups struggle, Yerevan’s transportation system seems headed for collapse. Without urgent intervention, these policies may leave residents stranded and unfairly penalized, prompting serious questions about City Hall’s priorities and governance.
