Factors influencing payment convenience in the mini-bus taxi industry in Cape Town, South Africa

Abstract

While mobile payment applications are progressively becoming more pervasive in South Africa, many regard them as the potential payment system of choice due to their accessibility and ease of use. The recent uptake of digital technology in the commuter transport industry for convenience payment appears not to have been embraced by the mini bus taxi industry in South Africa. Although technology has had a big impact on the metered taxi industry, adoption of technology in the public taxi industry has been rather tenuous. The aim of this research was to explore the factors influencing the adoption of convenience payment by the mini bus taxi industry. This study utilized a qualitative method with case study approach. The six procedures of drawing a sample were utilized. Stratified sampling was used for the study and the targeted population was taxi owners that have at least two or more taxis operating in the city, taxi drivers and commuters that use taxis as a form of transport. For the purpose of the study the sample size was drawn from three selected taxi ranks in the Cape Town metropolitan area and data collection was done through semi-structured interviews. The ATLAS.ti software was used to analyses data. Written permission was obtained from the mini bus industry stakeholders and prior approval to record was obtained. Formal ethics approval to conduct the research was obtained from the Faculty of Business Research Ethics Committee at the Cape Peninsula University of Technology. The research guaranteed participants confidentiality, human subject protection, objectivity, integrity and honestly. The results of the study show there is no business process in place that is followed throughout the industry. The study proposes a model that could be used in the deployment of mobile payments applications for the convenience of the mini bus taxi industry customers. The uptake of such technologies will help bring more value and innovation into the public transport system in South Africa.