London black cabs to accept card and contactless payments

London black cabs to accept card and contactless payments

London black cabs have been given the go-ahead to accept cards and contactless payments for the first time as they face up to competition from rival service Uber.

Competition in the taxi industry has risen fiercely in the last year, with London cabbies protesting against the taxi-hailing app Uber. The Licensed Taxi Drivers Association pushed for the app to be banned, arguing it works as a metred system, which is not allowed for private hire vehicles.

The plans for London's iconic black cabs to accept cards follows a consultation where 86% of respondents backed card acceptance, and 68% agreed contactless should also be available.

In the deal agreed with Transport for London,  credit card companies have agreed to reduce transaction fees for the cab drivers, normally charged at a rate of up to 10% by cabbies for each card payment. However, fares will rise for all users by 20 pence per ride, irrespective of card use, to cover fees.

If approved by the TfL Board in February as part of the annual taxi fares revision, the fare change will begin in April 2016, with cards and contactless having to be accepted from October 2016.

Comments: (3)

Bob Ford
Bob Ford - Barcays Bank plc - London 26 November, 2015, 13:18Be the first to give this comment the thumbs up 0 likes

It still surprises me that Taxis are not making better use of the likes of PayM. Also, aren't mobile type payments cheaper in processing than cash?

Richard Sanders
Richard Sanders - Hermosa Consulting - Southend on Sea 26 November, 2015, 15:26Be the first to give this comment the thumbs up 0 likes

I agree with you Bob. It would mean cabs would have to carry less cash which must be safer. While I do not subscribe to the theory that Uber is the greatest thing since sliced bread this is a positive move from its introduction in London

Ketharaman Swaminathan
Ketharaman Swaminathan - GTM360 Marketing Solutions - Pune 27 November, 2015, 12:33Be the first to give this comment the thumbs up 0 likes

Noncash payment methods have their own hidden costs. The intermediaries who stand to make a cut on every non cash payment are either ignorant about them or choose to ignore them. Alas, they're only evident to poor cabbies. Not surprisingly, they refuse card payments because they know that Cash in Hand Is Worth More Than Card In Bush

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