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Visa Navigate Spotlight Series

November 2023


8 Minutes

IN THE SPOTLIGHT: Taking South Africa’s Ride Sharing to the Next Level with Loop

About Loop
An award-winning tech startup set on a mission to bring minibus taxi operations into the 21st century by harnessing the power of technology to make taxi trips seamless, convenient, and safe.

Since its inception, Loop’s team has been propelled by a vision to fundamentally transform transport in South Africa, improving the daily commute for 4 million riders and more than 400.000 taxi drivers.

Visit Loop website here.

The minibus taxi industry is an integral part of South Africa’s transport system. One company operating in the sector – Loop – is focused on digitizing and formalizing the industry, taking it into the future. Using Loop’s software and hardware, commuters can hail, pay, and insure their belongings. Meanwhile, drivers can streamline their business processes using Loop’s web portal and analytics tools.

Aida Diarra, Senior Vice President and Head of Sub-Saharan Africa at Visa, sits down with the founder of Loop, Imtiyaaz Riley, to discuss the dynamic intersection between the mobility and payments sectors in South Africa and Loop’s mission and growth to date. They also shed light on an exciting new partnership between Visa and Loop, key lessons and aspirations for the future.

Aida: You have previously said that the minibus taxi industry is the backbone of public transport in South Africa. How have South African consumers’ tastes changed regarding their reliance on minibus taxis since you founded Loop?

Imtiyaaz: Since founding Loop, we've observed a notable shift in South African consumers' reliance on minibus taxis. The minibus taxi industry remains the backbone of public transport in South Africa, but consumers' tastes have evolved in response to changing circumstances. With Loop's introduction of digital solutions, commuters have gained convenience and transparency in their daily commutes. They now expect the ability to transact digitally. This shift reflects a growing demand for modernized and efficient transport options, aligning with our vision of digitizing minibus taxis.

Aida: Loop has played a significant role in setting the standard in tech-powered mobility in South Africa. What has been the secret to your success in the minibus taxi industry?

Imtiyaaz : Loop's success in the minibus taxi industry can be attributed to several key factors. Firstly, our commitment to innovation and technology has set us apart. By developing a digital platform that streamlines the booking, payment, and tracking processes, we've enhanced the overall commuting experience. Additionally, our deep understanding of the minibus taxi industry, rooted in my own family's history of involvement in the industry, has allowed us to create solutions tailored to the specific needs of commuters, drivers, and operators.

Furthermore, our emphasis on collaboration and partnerships has been pivotal. We've worked closely with stakeholders, including taxi associations, to ensure that our solutions align with industry standards and regulations. This collaborative approach has been essential in gaining acceptance and trust within the industry.

Lastly, our focus on community impact has been a driving force. We're not just about improving mobility; we're dedicated to creating opportunities for economic empowerment and job creation within the minibus taxi industry. This holistic approach has been instrumental in our success.

Aida: The digitization of payments has no doubt enabled more choice in how people pay for goods and services. What are the main benefits of digitizing payments, specifically for customers and operators of minibus taxis?

Imtiyaaz: Let me start with passengers. The digitization of payments offers greater convenience and peace of mind. They no longer need to worry about carrying cash or finding exact change for their minibus taxi fares. Instead, they can use their smartphones or digital wallets to make payments swiftly and efficiently. This convenience extends to booking rides, simplifying daily commutes.

There are also several benefits for taxi operators and drivers. They too stand to gain from the digitization of payments. Firstly, it reduces the burden of cash handling as handling physical money can be cumbersome and risky with drivers sometimes working in trepidation of getting robbed. Digital payments, therefore, allow operators to significantly reduce cash transactions and their associated risks.

Aida: What’s the broader impact of the digitization of payments for the minibus taxi industry, beyond customers and operators?

Imtiyaaz: Loop's broader impact transcends transportation. It touches economic empowerment, job creation, financial inclusion, urban mobility, data-driven decision-making, entrepreneurship, and collaboration among various stakeholders. By digitizing and formalizing the minibus taxi industry, Loop is contributing to positive changes in South Africa's economic and social landscape.

Digitizing payments in the minibus taxis extends beyond just convenience and efficiency. It has the potential to bring about substantial positive changes for South Africa as a whole.

Aida: Loop has, of course, recently partnered with Visa, introducing a Tap-to-Phone instant payment solution for minibus taxi customers and operators. Why was this partnership the right next step for Loop in light of its mission to formalize and digitize the minibus taxi industry?

Imtiyaaz: Since we started Loop, our central vision has always been about making a positive impact on the minibus taxi industry. When the opportunity to partner with Visa presented itself, it felt natural for us. Traditionally, this industry has been cash-dominant, which, while being functional, comes with its own set of challenges, from safety issues to inefficiencies.

With the Tap-to-Phone solution, we're not just introducing a digital payment method; we're reshaping the transactional experience for both operators and passengers. It's safer, quicker, and just a lot more convenient. Plus, given the current global health climate, reducing cash handling is a step in the right direction for everyone's well-being.

Moreover, this partnership with Visa - a globally recognized brand - not only adds a layer of trust for our users but also provides us with a platform to gather invaluable data. This data allows us to better understand commuter behavior, which in turn helps us refine our offerings and make the entire system more efficient.

Aida: Despite the partnership being announced relatively recently, you’ve also previously offered a Chat-to-Pay feature. What feedback have you received from customers and operators on introducing these new digital payment methods?

Imtiyaaz: The Chat-to-Pay feature was one of our initial forays into digitizing the payment experience within minibus taxis. The response, overall, has been incredibly insightful. We've had passengers who absolutely loved the convenience. It’s simple and fits seamlessly into their daily routine, since so many South Africans are already accustomed to using chat platforms for various tasks.

From operators and drivers, the feedback was great. Many appreciated the ease of transaction and the reduced need to handle cash, especially considering safety concerns. They’ve told us about instances where, thanks to the feature, they didn’t have to worry about having exact change or dealing with potential disputes over fares and as they saw passengers becoming more familiar and comfortable with the system, their confidence grew even further.

With our recent partnership with Visa and the Tap-to-Phone solution, the enthusiasm has been palpable. It feels like a more direct, intuitive step forward from Chat-to-Pay, and the initial feedback reflects that. But I think what's most important in both these endeavors is the dialogue we've established with our users. Their feedback, both positive and constructive, shapes our approach and ensures that our innovations truly cater to their needs and the unique dynamics of minibus taxis.

Aida: South Africa is by far not the only country moving to increasingly digitize payments. What can other markets or urban mobility segments, looking to reap the same success in facilitating mobility payments, learn from Loop’s partnership with Visa?

Imtiyaaz: Absolutely, the shift towards digitization is evident across the globe, but it's essential to remember that each market presents its unique set of challenges and cultural nuances. Our experience with Visa in South Africa sheds light on several elements that I believe can guide other markets in this transition.

Firstly, it's vital to deeply understand the local context. For us, in South Africa, the minibus taxi industry is steeped in tradition and established systems. Any new initiative or solution needs to work within these frameworks while offering an upgrade. So, when venturing into other regions or mobility segments, it's essential to gauge the pulse of local customs and behavior.

Collaboration has been at the heart of our success with Visa. It wasn't just about merging technologies; it was about pooling our expertise. Visa, with its vast global experience in digital payments, combined with our intimate understanding of South African urban mobility, created a synergized approach. Such collaborations can pave the way for solutions that are both state-of-the-art and grounded in reality.

One of the cornerstones of our success has been the simplicity and accessibility of our solution. Often, in the zeal to go digital, there's a tendency to over-engineer, but the magic lies in keeping it simple. The goal is to offer technology that's straightforward, intuitive, and reduces barriers for both the operators and the end-users.

In essence, while digitizing payments is a global narrative, the real success lies in the nuances – in marrying global best practices with local insights and challenges."

Aida: Looking to the future – what do you see as the next frontier in enabling payments efficiency and security for the minibus taxi industry?

Imtiyaaz: The future is undeniably exciting, and while we've made significant strides in the digitization of payments within minibus taxis, there's still a vast landscape of possibilities ahead of us.

First and foremost, seamless integration is the next big thing. We're working towards integrating various payment methods into a unified system, ensuring that passengers and operators have multiple payment options at their disposal without complicating the transaction process. Imagine a world where a passenger can use a smartwatch, a phone, a card, or even biometric methods to pay for their journey, all processed through a single platform.

Additionally, leveraging artificial intelligence and machine learning to predict and analyze payment behaviors will play a significant role. This will allow us to offer personalized fare discounts, dynamic pricing, and loyalty rewards to regular commuters, enhancing the overall user experience.

Security, of course, will always be paramount. As technology advances, so do potential threats. We're looking into state-of-the-art encryption and fraud detection systems, and also into blockchain technologies, to ensure every transaction is not only smooth but also iron-clad in terms of security.

Lastly, as the industry becomes more digitized, there's an opportunity to offer financial services tailored specifically to the needs of taxi operators and drivers. From micro-loans to insurance services, the digital payments infrastructure can serve as a foundation for a whole suite of financial products that cater to the unique financial landscape of the minibus taxi industry.

While our current focus has been on streamlining payments, the vision for the future is a holistic ecosystem that doesn't just facilitate transactions but also fosters financial growth and stability for all stakeholders in the industry.

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All brand names, logos and/or trademarks are the property of their respective owners, are used for identification purposes only, and do not necessarily imply product endorsement or affiliation with Visa.

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