SAPay: Electronic Fare Collection for South African Minibus Taxis
SAPay has been selected as the preferred electronic fare collection solution by the National Taxi Alliance (NTA), representing over 50% of South Africa's minibus taxi operators. Following successful pilots across Gauteng in 2024, we are implementing a sponsored joint proof of concept for 300 vehicles to demonstrate tap on phone and scalability before national rollout.
Industry Impact & Goals
Financial Inclusion
- Transition from cash to electronic payments
- Banking access for unbanked operators and passengers
- Enhanced financial transparency
Safety & Efficiency
- Reduced cash-related security risks
- Improved operational efficiency
- Better industry standards through digital transformation
Proof of Concept Scope
Location
Mamelodi, with potential expansion to the Vaal and Soweto
Scale
300 minibus taxis
Duration
3 months (February - April 2025)
Budget
R900,000
Payment Methods
SAPay smartphone app
Credit/debit cards
SAPay prepaid and top-up cards
Tap-on-phone capability
Success Metrics
Active Vehicles
Number of active vehicles successfully onboarded onto the SAPay system.
Passenger Transactions
Total number of passenger transactions processed through SAPay.
Driver Compliance
Rate of driver compliance with the SAPay system and procedures.
Hardware Adoption
Rate of successful hardware adoption among minibus taxi operators.
Passenger Satisfaction
Feedback gathered from passengers on their experience using SAPay.
Driver Feedback
Collected feedback from drivers regarding usability and effectiveness of SAPay.
Association Endorsements
Statements of support and endorsements from taxi associations.
Success Stories
Positive stories for marketing and showcasing the impact of SAPay.
Areas for Improvement
Areas identified for optimization and improvement of SAPay's functionality and processes.
Proof of Concept Forecast KPIs
Fleet Size
300 minibus taxis participating in the proof of concept
Daily Operations
4 trips per day on average, carrying 14 passengers per trip
Financial Metrics
R20.00 cost per trip, operating 20 days per month
Monthly Revenue Potential
Total projected revenue: R6,720,000
Return on Investment for Visa
Estimated 5-10% of minibus fares paid with Visa
Early entry into South Africa's R50B taxi industry, establishing Visa as a pioneer in modernising transport payments.
PoC Visa Revenue forecast at R336k - R672k
R336k-R672k monthly transaction value, with opportunity to scale to 250,000+ taxis nationwide.
Transaction volumes via Visa Tap on Phone will be a function of existing adoption rates of Visa as a payment method amongst the minibus taxi commuter market, and is expected to ramp as awareness grows. The PoC will also gather market intelligence.
Partner Responsibilities
1
SAPay
- Platform provision and management
- Street team coordination
- Education campaign content
- Industry approvals
- Technology support
- Local operational support
2
Absa
- Compliance oversight for SAPay
- Branch support network
- Training personnel
- Unbanked customer onboarding
3
Visa
- Marketing budget
- Campaign sponsorship
- Strategic support
Budget Allocation
Equal distribution across three key areas:
1
2
3
1
Ground Personnel
R300,000
2
Campaign Production
R300,000
3
Technology Support
R300,000
- Ground Personnel: Education campaign delivery, Local support teams, Training staff
- Campaign Production: Marketing materials, Media content, Educational collateral
- Technology Support: System administration, Platform maintenance, Technical support
Timeline
1
December 2024
- Dec 13: Initial compliance review with Absa
- Dec 14: PoC strategy presentation to Absa
- Dec 17: Absa approval and communication to Visa
- Dec 20: Visa commitment on PoC plan
2
January 2025
- Jan 15: Funding received
- Mid-Jan: Campaign creation begins
- Mid-Jan: Team training commences
3
February 2025
- Early Feb: Rank onboarding begins
- Feb 1-28: Education campaign
- Feb 28: All 300 vehicles live
4
March-April 2025
- Ongoing operations
- Success metric collection
- Testimonial gathering
- Association expansion
- Compliance improvement
Weekly Governance
Key personnel from SAPay, Absa, and Visa meet weekly
Progress tracking against timeline & Dashboard review of key metrics
Stakeholder updates & Risk and issue management
Expected Outcomes
1
2
3
4
5
1
Validated market adoption model
2
Proven operational framework
3
Documented success metrics
4
Industry testimonials
5
Scalable rollout plan for national expansion
This proof of concept will demonstrate SAPay's capability to transform the minibus taxi industry through digital payments, while improving safety, efficiency, and financial inclusion across South Africa's transport sector.
