The South African National Taxi Association Council (Santaco) plans to implement a smart card-based solution, OmniPay's Electronic Management System (EMS), for safer commuter fare collections, better management of taxi associations and protection of commuters.
"The smart card will function like a debit card to help commuters, taxi drivers and owners to manage cash," says OmniPay MD Colin Louw.
"This will reduce the risk of carrying cash for the commuters, the taxi drivers will no longer need to count cash while driving and the taxi owners can manage their business properly," says Louw.
The system, created by SurePaw Technologies, is expected to enhance the control of taxi operating costs.
"The system is being paid for by Santaco for the benefit of its members, and will also include a route monitoring system to eliminate any illegal taxis operating in designated routes - to benefit taxi associations," says Louw.
"On boarding the taxi, the commuters will place their cards into a built-in taxi unit by the door. It will scan the details and deduct the fare for the trip. The taxi driver will acknowledge the payment from a signal device. The values will be stored in a central unit that will send instructions to the banks to pay the taxi owner," explains Louw.
"The commuter card will be subsidised for first time purchases. We are still negotiating for the cards to be available from the bank branches, mobile units and retail outlets," says Louw.
"The new system will make the taxi industry more economically viable and sustainable, and make the management of taxis far more efficient," says Tom Muofhe, president of Santaco.
"Perhaps the most important of all, commuters will benefit by being automatically covered for personal medical expenses and funeral cover in the event of being injured or killed in an EMS-fitted taxi, a scheme underwritten by African Life and Netcare," says Muofhe.
"In the past, commuters were offered no benefits at all and had to rely on the Road Accident Fund, which has severe limitations," he adds.
RedPay, an electronic payment and security company, will manage the security requirements associated with the use of electronic payment systems, as well as the associated Reserve Bank and commercial bank requirements.
Santaco and SurePaw Technologies are planning a pilot project this year to test the system in about 1 000 taxis.
"The pilot dates and the area for initiating the pilot project have not yet been finalised," says Louw.
"The purpose of the pilot is to confirm its compliance with the requirements of all stakeholders, including the commuters, Santaco, the government, the Reserve Bank, the commercial banks and the community at large," says Muofhe.
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