Visa, Loop partner to digitize taxi transactions

Visa, in collaboration with Loop, has introduced a groundbreaking digital solution set to transform the taxi industry in South Africa. Lineshree Moodley, the Country Head for Visa, highlighted the significance of expanding access to digital financial services for all individuals, emphasizing financial inclusion as a fundamental right rather than a privilege. The initiative aims not only to enable digital payments but also to foster financial literacy and inclusion within segments that have traditionally been underserved. The partnership with Loop has led to the development of an app for taxi drivers, allowing commuters to use their cards or phones for seamless transactions. This innovative solution offers convenience, safety, and transparency, providing valuable data for drivers and potentially unlocking opportunities for financial growth and development. By formalizing transactions, entrepreneurs in the taxi industry, such as drivers, can now access services like micro-loans to expand their businesses and enhance their financial literacy. Moodley emphasized the power of data in building trust and credibility, enabling previously marginalized individuals to access credit opportunities. The integration of more participants into the digital financial ecosystem, including SMEs around taxi ranks, marshals, conductors, and commuters, is set to create a safer and more convenient experience for all stakeholders. By digitizing payments and expanding value-added services, the initiative opens the door to endless possibilities for growth and development within the industry. Looking ahead, Moodley envisions a future where taxi drivers can leverage the seamless digital platform to access a myriad of services beyond transactions. The initiative aims to pilot the solution with a focus on changing behaviors and fostering trust in digital payments. By onboarding more players into the digital ecosystem, such as other service providers and commuters, the taxi industry could witness a significant transformation, offering a wide range of value-added services like airtime and electricity purchases. The response from the taxi industry has been promising, with partnerships forming among various stakeholders to drive the initiative forward. The pilot program, OneRoute, operating between Mitchell's plain to Balboa with 70 taxis, is just the beginning. The roadmap includes plans to expand the initiative to more routes across South Africa, with the ultimate goal of digitizing over 1,000 taxis in the next year. The move towards cashless transactions not only enhances safety and convenience for consumers but also streamlines operations for drivers by reducing the need to handle large amounts of cash. The standardization of fees and enhanced visibility of transactions are set to revolutionize the industry, paving the way for a more transparent and efficient ecosystem. As the initiative gains momentum, the taxi industry in South Africa is poised for a digital transformation that could empower drivers to operate as formalized businesses with a track record of transactions, opening up new avenues for financial growth and sustainability. Visa and Loop's collaboration represents a milestone in driving financial inclusion and digital innovation within the transport sector.