The minibus taxi industry in South Africa relies almost entirely on cash-based fare collection, a practice that presents a range of operational and financial challenges. Because cash transactions are difficult to track accurately, taxi owners and associations often struggle to monitor daily revenue, verify income and maintain reliable financial records. Drivers are required to collect fares, count cash, provide change and keep informal records while operating the vehicle, a process that increases the likelihood of errors, revenue losses and undeclared income. The absence of transparent and verifiable payment records can also contribute to disputes between drivers and owners and limits the industry’s ability to access formal financial services such as credit, insurance, and other financial products.

Furthermore, the need to handle significant amounts of cash exposes drivers to safety and security risks, including theft and robbery, while also slowing down the boarding process as fares are collected and change is issued. This continued dependence on cash ultimately reduces operational efficiency, weakens financial accountability, and constrains broader efforts to modernise and formalise the minibus taxi industry.