In a move toward furthering the digitisation of Cape Town’s taxi industry, Loop has announced a significant partnership with global payments giant, Visa. The collaboration aims to introduce a seamless and secure digital payment system, benefiting both minibus taxi operators and commuters.

At the launch for the new partnership on Thursday, the collaborators delved into the gap in the market that only they were able to address.

Loop’s origins and vision

Founded three years ago by Imtiyaaz Riley and Jamie Thurston Wyngaard, Loop was created to address the pressing need for a safer, more efficient payment system within Cape Town’s taxi industry. Riley, a third-generation taxi operator from Manenberg, was inspired by the challenges faced by his family in managing cash transactions. Wyngaard, Loop’s Customer Experience Officer, explained that the company was born from a desire to modernise the industry while maintaining strong community ties.

“We launched our payments, our chat to pay service in June last year. We started testing, we engaged with commuters and this is the anniversary of the service. We’ve gotten to a point where we’re not just doing taxis, but we’re onboarding an ecosystem to utilise such a simple way of paying with no bank charges and it’s instant.”

The Manenberg Taxi Association’s chairperson, Yusuf Kaunda, says it has been on board for the project since its inception. Kaunda highlighted the practical benefits of Loop’s system, particularly the ability to track earnings and manage finances more effectively.

“Now we can work from a financial system where we can account for our money, build pension funds, and even save for a rainy day,” Kaunda noted.

Wyngaard says Loop’s approach to digitisation is deeply rooted in understanding the needs of both the taxi operators and their customers. Riley’s background in the taxi industry provided valuable insights that have shaped Loop’s development.

“We didn’t build from the outside in. We built by speaking to customers and understanding their needs,” he explained.

The partnership with Visa

Building on its initial success, Loop’s partnership with Visa represents a significant leap forward. The collaboration introduces tap-to-phone technology, allowing commuters to pay with their cards or smartphones. Visa’s Vice President of Products and Solutions in Sub-Saharan Africa, Vinesh Ramnarain, emphasised the dual benefits of the system. He says the process offers the most convenience and provides operators and commuters with the safety of secure payments.

He added that it also noted common concerns about the use of technology, saying that merchant education and support are critical to its success.

“There’s a lot of security built into this system. If somebody steals your card, you can phone the bank and say, ‘stop it’. If somebody takes your cash, good luck.”

Ramnarain says having heard of the experiences of those working in the taxi industry, with this new feature, Loop will continue to revolutionise the industry.

“You have a really different appreciation for the taxi drivers and what they’re going through.”

Challenges and community Impact

Kaunda says Cape Town’s taxi industry has historically been resistant to change, with operators wary of new technologies.

However, Kaunda notes that the benefits of Loop’s system have gradually won over many sceptics.

He says the taxi industry can now compete against other public transport services on offer in Cape Town. Kaunda says he’s been in talks with the City in previous years, questioning the need for other transport services, when the taxi industry is already well established.

“We understand they want to make it more affordable for our people to get into daily commute seamlessly. Why don’t you then partner with the industry and all those billions you want to spend on new competition? Why don’t you invest in the taxi industry? And that is what Loop is trying to show government… The system is already there. We just need to improve the system.”

Meanwhile, one of the most significant impacts of Loop’s system is its contribution to the community. Wyngaard proudly shared that in just six months, Loop had reallocated over R10 million from the private sector back into the taxi industry.

“What I love about that is that the money is being used in Khayelitsha, Mitchell’s Plain, and Manenberg. It’s going back into the community,” Wyngaard said.

He further explained that the system not only facilitates payments but also empowers taxi drivers to compete with digital players in the private sector.

Looking Ahead

As the partnership between Loop and Visa continues to grow, the potential for further innovation in the taxi industry is immense. Both companies are committed to expanding the ecosystem of digital payments, bringing in more partners and enhancing the technology. Ramnarain highlighted the importance of creating a network of stakeholders to drive the adoption of the new system.

“This is just the beginning,” said Ramnarain. “We want people to tap and say ‘buy’. That’s the effect we’re aiming for.”

The introduction of Loop’s digitised payment system marks a significant milestone in the evolution of South Africa’s taxi industry.

“It’s not just about technology and payments; it’s about enabling more people to have decent lives,” say Wyngaard.

Loop has offered interested parties a R10 credit to use on its services. Click here to get access to the link, that will open to its WhatsApp chat. The below video shows how the process works.