Invented by Hackney cab driver Peter Schive, the free cab:app lets customers hail taxis in the UK and Ireland from their iOS, Android, Blackberry or Nokia handsets.

The new mobile payment feature will allow drivers to accept Visa, Mastercard, American Express, Diners and Laser debit and credit cards for instant hails, pre-bookings and fixed price fares.

Passengers can either pre-register their card or drivers can complete transactions at the end of journeys.

Cab:app says that its system is cheaper and easier than Chip and PIN options, eliminating the need for hardware and reducing card processing fees - typically costing passengers 3.9% on top of the fare, rather than the 10% of other options.

Says Schive: "As a London cabbie for over 10 years I wanted to develop a payment facility that was fair, transparent and secure to help fellow drivers offer improved services at a lower cost to passengers. I'm proud to say that cab:app has achieved this and is now available to all Hackney carriage drivers and passengers across the UK and Ireland."