Ms Mallon revealed details of the plan during a meeting with cab drivers yesterday.
Those involved with the industry say they have been put financial under-pressure as a result of Covid-19 restrictions.
There had been criticism of criteria for a £1,500 one-off payment announced in November, which required those applying to have an unbroken insurance record from March until September.
Some had cancelled their policies in a bid to save cash.
Last week Ms Mallon said she would seek further powers to for a second financial assistance scheme for drivers.
Taxi drivers say that during a meeting yesterday the minister confirmed that an additional payment of £1,500 will now be made to cover the period from September 2020 to March 2021.
Taxi driver Pat Meighan, said: “The Minister has acknowledged the plight of the taxi industry in confirming that she now proposes on bringing forward a second scheme.”
Solicitor Darragh Mackin, of Phoenix Law, represents NI Taxi Drivers and made representations to the minister during yesterday’s meeting.
“This development comes as a massive relief to the entire taxi industry who have collectively come under financial hardship due to the ongoing covid pandemic,” he said.
Last month a Stormont committee heard a third of taxi drivers in the North West had quit the industry after Derry and Strabane went into a second lockdown on October 5 because of a huge rise in Coronavirus cases.
The Infrastructure Committee also heard that nearly half of taxi drivers in the North of Ireland did not apply for emergency funding.
Eamon O’Donnell, from the Derry-based North West Taxi Proprietors, said 30 per cent of their drivers had quit and will be hard to replace in the current economic climate.
Mr O’Donnell said taxi operators provided an essential service to health workers and other key staff during the lockdowns.
They were also on hand when families had to be moved into emergency accommodation overnight by statutory agencies.
In many cases, “coffers are now empty” and they need a meaningful support scheme to save firms from closure, Mr O’Donnell said.