TVB drivers are being equipped with payleven chip and PIN readers which they can use with iPhones and iPads to accept card payments for a 2.75% transaction fee.

Detlef Platte, executive committee, TVB, says: "We are always looking for great innovations. payleven offers us the opportunity to allow credit card payments without a monthly fee and a bulky card terminal."

Konstantin Wolff, co-founder, payleven, adds: "Traditional solutions for accepting electronic cash payments are mostly expensive, not mobile and not customized to the needs of small businesses. Taxi drivers in particular know these problems."

Payeleven is not the only reader and app player to target the taxi market; US giant Square has been piloting its technology with New York cabbies although the trial was recently cut short with Jack Dorsey's firm taking its system back to the drawing board.