inDrive, a ride hailing platform that allows passengers and drivers to negotiate fares inside the app, has introduced cashless payments in South Africa as the company expands beyond its cash based model in one of its markets where digital transactions are gaining traction.
The rollout adds card payments to a marketplace that previously relied heavily on cash transactions while maintaining existing payment methods. The move reflects changes in how users are paying for services in South Africa, where cards account for 63% of ecommerce transactions according to the latest dLocal Emerging Markets Payments Handbook.
The company said research conducted across cities showed demand from both passengers and drivers for additional payment options, particularly in situations where access to cash is limited, rides are booked for other people or travelers arrive without local currency. Users also cited easier coordination when arranging transportation for relatives or friends.
Rather than replacing existing payment methods, inDrive said it is maintaining different payment approaches depending on local market conditions. Cash remains available where usage remains high and local payment methods such as PayShap continue to be supported where relevant.
“South Africa is one of the clearest markets where adding card payments makes sense,” said Ashif Black, inDrive Country Representative in South Africa. “We’re not moving away from cash, we’re expanding choice. Our goal is to give people the flexibility to pay in the way that works best for them in different situations.”
The launch also serves as a test of how card payments can function inside inDrive’s marketplace model, where pricing is negotiated between riders and drivers rather than determined by fixed algorithms.
To support the rollout, inDrive partnered with dLocal, a cross border payments company that connects merchants with emerging markets payment systems. Through the integration, inDrive said it can provide local card collection, split payments between driver earnings and platform fees and process payouts to drivers using local payment infrastructure through a single connection.
