Big toll gate changes for South Africa

FNB has introduced Africa’s first contactless toll payment system at select South African toll gates, offering motorists a faster, more secure payment option and paving the way for a nationwide shift to contactless technology by 2025.

FNB, in collaboration with technology partner Visa, has successfully completed the rollout of new contactless payments across select toll gates ahead of the festive rush.

The move from FNB comes as the industry regulator has announced that starting 1 December 2024, a major shift will occur across toll plazas in South Africa as magstripe payments will be phased out in favour of contactless payment methods.

Trans African Concessions (Trac) confirmed that as of 1 December, swipe payments would no longer be accepted at N4 toll gates, with motorists required to use contactless cards, smart devices, Trac tags, or cash.

Overall, South Africa is transitioning to contactless payments as part of an effort to modernise payment systems, enhance security, and improve travel experiences during the festive season.

SANRAL and various toll concessionaires will continue accepting magstripe payments only until 31 May 2025. Fleet and garage magstripe cards can still be used until 30 June 2026.

FNB explained that this payment innovation – a first in Africa – will mean a more convenient, secure experience for South African motorists.

FNB has rolled out the new tap-and-go solution with selected toll road concessionaires over the past year.

Motorists at select toll plazas along the N3, TRAC N4 and Chapman’s Peak toll roads are now able to use a variety of payment methods for contactless payments.

Over 88 lanes have been switched on along the N3 toll route between Gauteng and KwaZulu-Natal at De Hoek, Wilge, Tugela, Mooi River plazas and the on and off ramps.

An additional 73 lanes have the tap payment terminals installed along the N4 toll route between Pretoria and Mozambique at Diamond Hill, Middelburg, Machado, and Nkomazi plazas, as well as the on- and off-ramps.

The FNB solution offers enhanced security, reducing the possibility of fraud and allowing users to keep cards or payment devices in their possession during payment.

“FNB remains committed to delivering innovative solutions, and we’re proud to be the first bank in the country to deliver a seamless tap-and-go toll solution,” Daniel Kaan, CEO of Core Banking and Merchant Services at FNB, said.

“The new payment processing platform marks a key milestone that opens up possibilities for further payment processing innovation at toll plazas across the country.”

Kaan explained that the process involved close collaboration with concessionaires to ensure a fit-for-purpose system for motorists.

“We’re pleased to see the excitement which has greeted the initial rollout. Feedback from the solution’s introduction has been highly positive. The solution has proven its benefits for not only toll concessionaires but issuers, acquirers, and cardholders.”

Motorists at the Tap and go-enabled toll plazas are able to use a variety of payment methods, including:

• Tap-enabled debit or credit cards (Europay, Mastercard, Visa)
• Payment apps like Apple Pay, Samsung Pay, and Google Pay
• Wearables such as Garmin, Fitbit, Samsung, Apple, and others
• Other tap-enabled apps that allow the use of South African-issued bank cards

Foreign cards are now also accepted at SA Toll plazas, and those who do not have a contactless card or device can still pay with cash or use a SANRAL tag.

As of the first of December, Magstripe cards, which require the card to be physically swiped, were no longer accepted at these toll plazas.

“FNB remains at the forefront of payment technology in Africa, and contactless payments are the natural evolution of the payments space,” Kaan said.

“We welcome SANRAL and the toll concessionaires’ decision to encourage their adoption. Contactless payments have proven to be popular amongst consumers as a quick, secure, and convenient way to pay.”

“This is demonstrated in the growing popularity of contactless payments generally – more than 50% of card payments made by FNB customers are now contactless.”

The rollout of the FNB solution will expand to additional toll road concessionaires in 2025, the bank added.