Abstract Road toll tax contributes significantly in the economic development of any nation. In developing countries, the toll tax collection is carried out either manually or electronically. However, both approaches suffer from various challenges, including prolonged waiting times, lack of transparency, high operational costs, and concerns regarding data security and privacy. This research aims to address these challenges using a blockchain-based system. The proposed system employs advanced image processing techniques, specifically “You Only Look Once” version 5 (YOLOv5), to accurately capture and store vehicles’ registration numbers in a local server situated at toll plazas. Subsequently, the vehicle identification, along with the driver’s credentials, is transmitted to an application server, where an Ethereum smart contract verifies the information and automatically deducts the toll charges from the driver’s account. The results from this study indicate that the proposed system effectively reduces vehicle waiting time and facilitates uninterrupted vehicular movement. Additionally, the system ensures transaction transparency, safeguards the security and privacy of vehicle details, facilitates non-stop payments, rendering unnecessary cash payments or radio-frequency identification scanning at toll booths, and incorporates a decentralized architectural framework to enhance security and mitigate potential system failures.
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