dLocal, a Nasdaq-listed cross-border payment platform serving emerging markets, and inDrive, a global mobility and delivery platform, recently introduced card payments and local driver payouts in South Africa.

This collaboration allows inDrive to facilitate card transactions directly within the app. It also enables real-time fare splitting between drivers’ earnings and platform fees, along with direct payment to drivers via domestic South African financial channels like PayShap.

By integrating both passenger payments and driver payouts through a unified system, this partnership tackles practical challenges in the ride-hailing sector. Specifically, it addresses the need for distinct infrastructure, local regulatory alignment, and access to relevant payment infrastructures for both collecting from passengers and disbursing funds to drivers.

South African payments landscape and expansion strategy

The South African ride-hailing market is forecasted to nearly triple by 2033. Digital payment adoption is progressing, with cards representing 63% of all digital transactions in the region. While electronic wallets are gaining traction, cash payments remain a viable option for many users who prefer them.

dLocal’s infrastructure has been implemented first in South Africa to support inDrive’s operations, setting up an end-to-end solution through which the platform can accept card payments and distribute driver payouts. This model is expected to be replicated in other African, Middle Eastern, and Latin American markets via a single integration that already exists.

According to Ashif Black, Country Representative for inDrive in South Africa, dLocal offers the capability of accepting card payments and disbursing driver earnings through a unified system. Similarly, Barrie Swart, Country Manager for dLocal in South Africa, emphasized that successful payment implementations in emerging markets require local infrastructure, established relationships, and an understanding of each market’s financial dynamics.