Stephen Hammond said job roles would change when the paper system for car tax discs is scrapped in October.
The minister allayed fears about job losses in a letter to Swansea East AM Mike Hedges.
Mr Hedges said the minister's response would "give comfort" to DVLA employees.
Concerns over the future of some of the 5,000 workers at the Driving and Vehicle Licensing Agency centre were raised in October after Chancellor George Osborne's Autumn Statement.
The chancellor announced that the tax disc would be replaced with an electronic system in October 2014.
The new system will allow people to pay the charge by monthly direct debit.
Mr Hedges had written to Mr Hammond asking for clarification of the government's intentions.
In his response to Mr Hedges, Mr Hammond said: "It is likely that the introduction of a direct debit scheme may mean there will be a natural reduction in the amount of refunds received, in addition to the withdrawal of the tax disc.
"This may mean changes to job roles and the need to train on new processes.
"Any reductions in numbers of people needed for these activities will be managed through redeploying to other growth areas of the business."
Mr Hedges welcomed the minister's assurances.
He added: "Whilst disappointed that the changes will reduce the number of job opportunities at the DVLA, I can see the advantages of both paying by monthly direct debits and not having to show a tax disc.
"I am pleased the minister is committed to redeployment rather than redundancies and I am sure this response will give comfort to many concerned DVLA employees."

Didn't MPs vote against bombing Syria a couple of years ago? In the last few days haven't the prime minister and the chancellor made clear they would only take military action in Syria if there was a consensus here in the UK? In any case, isn't it entirely unusual, almost unheard of in modern times, for British military action to take the life of a British citizen?
The answer to all three of those questions is yes.
But just a couple of weeks ago, an unmanned British Reaper drone did drop a missile on a group of so-called IS fighters in Syria that killed two British citizens.
One, the target, Reyaad Khan, was according to David Cameron involved in plotting a barbaric attack on British soil. In the PM's view and, he says, the view of the government's most senior lawyer - the attorney general - that made the attack entirely proper and legal.
"There was a terrorist directing murder on our streets and no other means to stop him," the PM said. Although we've been told repeatedly British drones have been flying over Syria to carry out surveillance, in the small print the government always retained the right to act in extremis without specific permission from MPs.
For Number 10, that action is distinct from its decision on whether to take military action and have RAF pilots join US forces flying bombing missions over Syria. The prime minister still wants to persuade MPs to back that plan this autumn, although a vote is unlikely until after the party conference season wraps up.
But this strike does add a sense of urgency to those making the arguments for intervention - a reminder that so-called IS plan and plot in Syria, that the direct threat to the UK is real and getting more serious.
But there are calls tonight from opposition politicians for more information and reassurance on the particular circumstances around this attack, accusations already that the strike is evidence of British "mission creep".
As the operation appears to have been led by intelligence the truth is we may never know what really happened, what the precise circumstances were.
But the fact that we know a British plane has dropped a British bomb in Syria, on British citizens may mean, earlier than expected, the battle lines in this debate are drawn.
Staff at Swansea's DVLA offices will be redeployed rather than face redundancy after changes to the way motorists pay their car tax, a UK transport minister has confirmed.
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You might be surprised by this afternoon's news that British bombing killed British nationals in Syria in the last few weeks.