The Cape Organisation for the Democratic Taxi Association (Codeta) has officially launched a cashless payment system for minibus taxis in Cape Town, marking a significant shift for one of South Africa’s most widely used modes of public transport.
The initiative, which came into effect on 1 June 2026, requires passengers to use payment cards that are scanned upon boarding taxis, replacing the traditional cash-based fare system.
Codeta Chairperson Nceba Enge said the move is intended to improve safety for both commuters and operators while embracing modern technology.
“Our customers will now be using cards, which they will scan when getting into our vans,” Enge explained.
He added that reducing the amount of cash carried by passengers could help lower the risk of theft and other safety concerns, particularly during peak commuting hours.
As part of the rollout, cameras are also being installed inside taxis to improve accountability and security across the network.
While the transition is expected to bring long-term benefits, Enge acknowledged that challenges are likely during the early stages of implementation as commuters and drivers adapt to the new system.
Some passengers have welcomed the change. Commuter Esethu Saliwa described the initiative as a step in the right direction, noting that cashless payment systems are already widely used in other forms of public transport.
However, she cautioned that technical issues and user adjustments may create temporary difficulties.
“Taxi drivers should exercise caution and patience with commuters,” she said, adding that occasional scanning problems should be expected while the system is being introduced.
Could Cashless Payments Change the Industry?
Beyond convenience and safety, the move has reignited discussions about the financial transparency of South Africa’s taxi industry.
The sector is estimated to generate between R90 billion and R100 billion annually, making it one of the country’s largest informal industries. However, because transactions are traditionally conducted in cash, there is often limited financial record-keeping.
This has long complicated efforts to accurately assess taxable income within the industry.
In recent years, advocates for greater formalisation have argued that improved financial tracking could help broaden South Africa’s tax base.
Wayne Duvenage, Chief Executive Officer of the Organisation Undoing Tax Abuse (OUTA), previously argued that integrating the taxi industry into the formal economy would not be punitive but rather a recognition of its status as a significant business sector.
Questions around tax compliance have also been raised by political parties, with concerns that many operators may not be fully participating in the country’s tax system.
However, experts note that enforcing compliance has historically been difficult due to the industry’s reliance on cash transactions and limited financial documentation.
As Cape Town’s cashless taxi project gains momentum, many will be watching closely to see whether the technology improves commuter experiences while also encouraging greater transparency within the sector.