South Africa adopts the Smart Ticketing Initiative: revolutionizing public transport through integrated, cashless travel solutions

Posted on October 30, 2025

The South African government is enlisting the private sector to help develop an integrated smart ticketing platform as part of an ambitious plan to modernize the public transport system. The goal is to develop a single ticket that can be used nationwide on a variety of transportation options, including buses, trains and taxis. The measure represents a radical change in the country’s public transport strategy as it attempts to address long-standing shortcomings.

To strengthen state-owned transportation infrastructure, the Department of Transportation (DoT) issued a Request for Information (RFI) seeking proposals and funding from private organizations. The ultimate goal is to make public transportation more convenient and efficient for passengers by eliminating long lines and reliance on paper tickets. In addition, by addressing some of the current shortcomings, the new system will help manage transportation revenues in a more transparent and effective manner.

Inspiration from global smart ticketing systems

Smart ticketing systems have long been successfully applied in developed countries, especially in Europe, offering integrated travel passes that integrate various modes of transport. Examples of these systems include the French Navigo Pass, the Swiss Travel Pass, and the German Deutschland-Ticket. These smart tickets allow users to travel across a network of transit services using a single card or mobile app. For example, the Swiss Travel Card offers train, bus and boat travel and even discounts on trams, mountain railways and cable cars, providing users seamless access to multiple modes of transport.

These systems typically work by allowing passengers to load credits or purchase tickets via a public transit wallet or account. Travelers can then tap the physical card or use an NFC (near field communication) enabled mobile app at entry and exit points, making travel more convenient and cashless.

Current transportation system in South Africa

The current public transport system in South Africa remains highly fragmented. Passengers are often required to purchase separate tickets for different modes of transport across different jurisdictions. For example, if a passenger needs to take a train, a bus and a minibus on the same trip, he or she must pay for three different carriers separately. This inefficiency is exacerbated by the fact that most train services require tickets, while many buses and almost all minibuses still operate on a cash-only basis.

With the growing trend of digital payment methods, cash-based systems are becoming increasingly outdated. It is expected that the introduction of the smart ticketing system will address these problems by simplifying the payment process and facilitating the transfer of passengers between different means of transportation without the need for multiple transactions.

Addressing cash dependence in the taxi industry

One of the key challenges that the new smart ticket initiative seeks to solve is the dominance of cash payments in the minibus taxi industry. The minibus taxi sector in South Africa has long been a vital part of the public transport network, but remains largely informal and cash-based. The use of cash has made it difficult for authorities to track profits, leading to widespread concerns about tax evasion in the industry.

Recent reports by Undoing Tax Abuse (OUTA) have highlighted that the minibus taxi industry generates annual revenues estimated at between R90 billion and R100 billion, but pays little or no tax. The lack of digital payment options further complicates efforts by the South African Revenue Service (SARS) to monitor and collect taxes from this sector.

The introduction of a cashless system could reduce this problem by providing a means of tracking transactions, thus increasing transparency. This could help bring the minicab industry into line with the broader tax system. The South African National Taxi Board (Santaco) has disputed the accusations of tax evasion, but acknowledged that the current tax framework does not fully address the informal nature of the taxi industry.

Challenges in implementing cashless systems

Despite the clear benefits of cashless payment system, several challenges have hindered its widespread adoption in the minibus taxi industry. Many attempts to introduce cashless systems have failed in the past, primarily due to internal politics within taxi associations and a lack of understanding of how cashless systems can improve business.

Taxi drivers and owners have historically been resistant to change, partly due to concerns about how the system works in practice. The industry operates on a cash-first basis, with payments for fuel and other operational costs having to be settled promptly. In some previous cases, cashless systems had been implemented, but drivers and owners found themselves in difficult situations when they could not access immediate funds to pay for fuel or other expenses.

For any new payment system to succeed, it must take into account the unique needs of the taxi industry. This includes addressing immediate cash flow issues faced by drivers and owners, such as ensuring payments for fuel and other necessities are processed quickly. Without these considerations, any new system is at risk of failure, as we have seen in previous attempts.

Benefits beyond transportation: financial inclusion and transparency

Alongside simplifying public transport payments, introducing a cashless system could help address broader financial inclusion challenges. For many taxi drivers, the inability to prove their income means limited access to financial services such as loans and insurance. By moving to a cashless system, drivers will have a digital record of their earnings, which can be used to access more financial services and benefits.

Additionally, going cashless could increase the overall transparency of the taxi industry, making it easier for government authorities and passengers to track payments. This could create a more formal and accountable industry, benefiting operators and customers alike.

A step towards modernization of transport in South Africa

Integrating a smart ticketing system into all transport options in South Africa has the potential to completely transform the country’s public transport system. The new platform has the potential to simplify passenger travel while ensuring increased transparency by resolving the fragmentation of the current system, reducing reliance on cash, and enhancing revenue management. But for the project to succeed, it will be necessary to address the specific requirements of each industry, especially the minibus taxi sector, and overcome the operational and political hurdles that have frustrated previous modernization efforts.

Ultimately, this project is a step towards building a more cohesive, efficient and transparent public transport system and can be used as a model by other developing countries facing similar difficulties.