The Knoxville Transportation Authority (KTA) has officially approved the recommendation from Knoxville Area Transit (KAT) to transition to cashless ticket payment methods or exact change only for bus fares. This decision was made during the KTA board meeting on Thursday, Oct. 24, 2024, and is aimed at enhancing the overall experience for customers while improving operational efficiency for KAT.

“The newly launched katpay fare payment system ensures passengers pay the lowest fare possible, making transit more affordable and accessible,” said Isaac Thorne, Director of Transit for the City of Knoxville. “With the approval to move to a mostly cashless system, we take another step forward in enhancing the overall travel experience for our riders.”

KAT launched katpay on Oct. 23, 2024, which uses fare capping. The fare payment system places daily and monthly limits on fares. Passengers will never pay more than $2 per day or $30 per 30-day period, and for those who qualify for discounted fare, the limits are $1 per day or $15 per 30-day period. katpay also provides passengers the flexibility to manage their fares through a mobile app or reloadable card. Passengers can learn more at www.katbus.com.

Riders who prefer to use cash onboard will still have the option to do so, and the cash price is $1 per ride (50 cents for discounted fare).


Key benefits of this transition include:

• Expedited boarding: Streamlined processes will make it quicker and more efficient.

• Fare capping implementation: This innovative feature of katpay saves customers money by tracking usage and stopping charges when the daily or monthly fare limit is reached.

• Flexible payment options: Passengers can choose between using a mobile account or a reloadable fare card, with multiple avenues available for adding value to their accounts with cash or credit/debit cards.

• Increased operational efficiency: The transition will lead to reduced maintenance and labor costs associated with fareboxes and cash handling.

• Enhanced flexibility: The move opens the possibility for KAT to explore rear-door boarding, further improving efficiency and passenger flow.


Important dates for the transition include:

• Oct. 23, 2024 – May 1, 2025: First Card ‘FREE’ promotion: katpay cards cost $4, but when passengers create an account and register the card, they receive a $4 credit to their account.

• Oct. 23, 2024 – May 1, 2025: Mobile katpay account credit: Passengers who create a mobile katpay account through the Transit app will receive a $4 credit to their account. Customers must contact KAT Customer Service to receive the credit, which does not apply to existing Transit app/mobile ticket users.

• Oct. 23, 2024 – Feb. 2, 2025: Ticket buyback program: Passengers can trade in unused paper tickets and change cards for credit in their katpay account.

• Dec. 2, 2024: Last day to purchase paper tickets at customer service. One-day passes will still be available on buses.

• Dec. 31, 2024: Last day to use paper tickets on buses.

• Jan. 2, 2025: Exact change required in fare boxes. No paper tickets can be used on buses, and no change cards will be given. The cash price will be $1 per trip (50 cents for discounted fare). No transfers.


KAT will continue to communicate updates and provide resources to assist customers during this transition.