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    Home » Government Plans one Smart Payment System for Taxis, Buses, and Trains
    ECONOMY

    Government Plans one Smart Payment System for Taxis, Buses, and Trains

    November 4, 20254 Mins Read
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    Barbara Creecy - South African Transport Minister
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    The South African Department of Transport is developing an ambitious integrated ticketing system that will allow commuters to use a single tap-and-go payment method across trains, buses, and minibus taxis. The initiative is part of a wider effort to modernise the country’s public transport network and bring it closer in line with global standards.

    According to TopAuto, the department has formally issued a request for information (RFI) to the private sector, inviting proposals and investment into the design, technology, and management of the platform. The aim is to replace paper tickets and cash payments with a digital system that simplifies travel and reduces waiting times for millions of commuters.

    Transport Minister Barbara Creecy has said that private sector participation will be essential to realising the plan, which seeks to make public transport more efficient, secure, and convenient. As reported by BusinessTech, the new payment solution will form part of South Africa’s broader Smart Mobility Framework, which aligns with the National Development Plan’s vision for integrated, safe, and reliable transport.

    Similar tap-and-go systems are already widely used in several European countries. In France, the Navigo Pass enables seamless travel across buses, trains, and the metro network. Switzerland’s Swiss Travel Pass offers access to trains, buses, and even boats, while Germany’s nationwide Deutschland-Ticket allows passengers to use regional public transport for a fixed monthly fee. Each system enables users to load credits or purchase passes in a central account, using either a smartphone app or a contactless card to pay at entry and exit points.

    As noted by The Guardian Nigeria, South Africa’s transport landscape presents unique challenges to such integration. The country’s public transport system remains highly fragmented, with commuters often relying on multiple modes of transport to complete a single journey—paying cash for taxis, buying separate tickets for buses, and using entirely different systems for trains. This lack of cohesion, coupled with regulatory inconsistencies and limited digital infrastructure, has long hindered efforts to modernise the sector.

    If successfully implemented, however, a unified payment system could help address one of the most entrenched issues in the industry: the dominance of cash in the taxi sector. The Organisation Undoing Tax Abuse (Outa) recently reported that the taxi industry generates between R90 billion and R100 billion annually but remains largely untaxed due to its informal, cash-based nature. According to News24, Outa’s CEO Wayne Duvenage has urged government to formalise the sector to ensure accountability and fair contribution to the national revenue system.

    The South African National Taxi Council (Santaco) has dismissed such claims as oversimplified, arguing that many taxi operators already contribute to taxes through personal income declarations. Still, the informal cash economy within the industry remains a major obstacle, both for tax collection and for operational efficiency.

    There have been at least 14 previous attempts by private companies to introduce cashless taxi payment solutions, as highlighted by Daily Maverick. Each failed primarily due to internal disputes within taxi associations, the lack of a unified regulatory framework, and drivers’ need for immediate cash to cover daily expenses such as fuel and vehicle maintenance.

    A successful rollout of the Department of Transport’s proposed system could mark a turning point. It would not only improve convenience for passengers but also enable taxi operators to build formal financial records, qualify for loans, and access insurance products. In doing so, the system could help reshape one of South Africa’s most vital yet informal economic sectors.

    As the department seeks private partners and investors, the success of this initiative will likely depend on strong collaboration between government, industry players, and transport associations. If managed effectively, South Africa’s commuters could soon experience a level of convenience long enjoyed in cities like Paris, Zurich, and Berlin — all with a single tap.

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