Are cashless cabs the way forward?

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Libby James
Merchant Services Expert

Libby James is co-founder, director and an expert in all things merchant services. Libby is the go-to specialist for business with more complex requirements or businesses that are struggling to find a provider that will accept them. Libby is regularly cited in trade, national and international media.

The Growing Trend Towards Cashless Payment in the Taxi Industry

In today’s fast-paced world, convenience and efficiency have become paramount, even in the world of transportation. Cashless cabs, a rapidly growing trend, are making travel easier for passengers and drivers alike. In this article, we’ll explore the benefits of cashless cabs and how they’re transforming the way we get around.

Why Cashless Taxis Are Gaining Traction

Cashless cabs, or taxis that accept digital payment methods like credit cards, mobile wallets, and contactless payments, are becoming increasingly popular for a multitude of reasons:


Convenience: Cashless payments save passengers the hassle of fumbling for cash or change. With a simple tap or swipe, you can settle your fare and be on your way.

Safety: In an increasingly digital age, paying with cards or apps is not only more convenient but also safer. There’s no need to carry cash, reducing the risk of theft.


Record-Keeping: Digital transactions provide a clear record of your journey, making it easier for expense reporting and ensuring transparency for both passengers and drivers.


Quick and Efficient: The payment process is streamlined, leading to quicker turnover times for drivers, which can result in more trips and higher income.


Portable Card Machines for Taxi Drivers

In the world of cashless cabs, portable card machines have become indispensable for cab drivers. These devices enable drivers to accept card payments securely and efficiently. Portable card machines are compact and connect to a mobile app, ensuring that drivers can process payments even in areas with limited network coverage. Passengers can swipe or insert their cards, and transactions are completed swiftly, reducing waiting times for both drivers and passengers. This technology has revolutionised the way cab drivers conduct their business, making cashless payments seamless.

Free Terminals for Taxi Drivers via Merchant Advice Service

Merchant Advice Service (MAS) recognises the importance of equipping cab drivers with the tools they need to thrive in the cashless era. That’s why we offer free card terminals to qualified cab drivers. These terminals are user-friendly, secure, and come with 24/7 customer support. With a free terminal, you can seamlessly transition to cashless payments, enhancing your business and providing convenience to your passengers.


Challenges and Concerns

While cashless cabs offer numerous advantages, there are also concerns that need addressing:


Accessibility: Ensuring that all passengers have access to cashless payment options is essential. Drivers and taxi companies must accommodate individuals who may not have digital payment methods.


Data Security: With the increase in digital transactions, protecting passenger data is crucial. Cashless cab operators must prioritise data security to maintain trust.


Fees and Charges: Some digital payment providers charge fees, affecting drivers’ and passengers’ overall costs. Taxi companies need to find the right balance.


Regulation: The taxi industry’s transition to cashless payments requires clear and fair regulations to protect all stakeholders.


Frequently Asked Questions for Taxi Businesses

Let’s address some common questions regarding cashless cabs
Are cashless payment options beneficial for taxi businesses?
Cashless payment methods can streamline your operations and reduce the risk of payment-related issues for your taxi business.
How can I inform my passengers that we accept cashless payments?
Ensure your passengers are aware of your cashless payment options through clear signage and communication with your drivers.
Can drivers receive tips digitally through cashless payment systems?
Yes, drivers can receive digital tips, providing a more convenient and cashless way for passengers to show appreciation for your services.
What should I do if a passenger’s digital payment method fails during the journey?
In such cases, having backup payment options available for your passengers is a good practice to ensure a seamless payment process.
Do cashless payment solutions support mobile wallets like Apple Pay and Google Pay for taxi businesses?
Yes, many cashless payment solutions offer a variety of payment options, including popular mobile wallets, enhancing convenience for your passengers.
Are there additional charges associated with using digital payment methods in cashless cabs for taxi businesses?
Some cashless payment providers may apply processing fees. As a taxi business, it’s important to consider these fees in your pricing strategy.
Can passengers split the fare when using cashless payments for taxi businesses?
Many cashless payment apps allow passengers to split the fare, simplifying group travel and making it easier for your passengers to share costs.
How can I keep track of my taxi business’s digital payments and expenses efficiently when using cashless payment methods regularly?
Utilise transaction history and reporting features offered by cashless payment solutions to manage your taxi business’s financial records effectively.

How Merchant Advice Service (MAS) Can Help

At Merchant Advice Service, we understand that the transition to cashless payments can be both exciting and challenging. We are here to guide both taxi drivers and passengers through this journey. Whether you’re a driver looking to integrate cashless payments or a passenger seeking the most convenient travel options, MAS can help you navigate the world of cashless cabs. 

For tailored advice and solutions, visit our MAS page to see how we can assist you in this transformative era of transportation. For more advice like this, visit our blog page!


The evolution of taxi services towards a cashless model is indicative of a broader shift in transportation preferences. Taxi operators are now at the forefront of this change, embracing real-time, efficient modes of transport that cater to a tech-savvy populace. Black cabs and taxi fleets are increasingly equipped with card readers, facilitating ease of payment for both pick-up and drop-off locations. This innovation has streamlined the process of calculating taxi fares, allowing for a seamless transfer of funds and ensuring that local cab services remain competitive in a digital world.


The adoption of cashless systems speaks to a future where convenience and security are paramount. With each local cab trip, passengers and drivers benefit from a system designed for the rhythm of modern life. As we look to the horizon, it’s clear that these advancements in payment technology and the adaptability of taxi fleets will continue to redefine our traditional concepts of mobility and service.


For those within the taxi industry—whether as a passenger or an operator—embracing this shift to cashless transactions is not just about keeping pace with technology. It’s about moving forward with a mode of transport that is as dynamic and real-time as the world around us. The journey ahead is promising, and cashless cabs are driving us toward an exciting, efficient, and secure future.

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Libby James

Libby James Co-founded Merchant Advice Service alongside David Bird in 2016. Her finance background, coupled with retail and customer service experience, gave Libby the drive to bring transparency and non-biased advice to the world of merchant services. Having come from the heavily regulated mortgage and insurance industry, Libby found it puzzling that other financial sectors lacked regulation and transparency leaving customers confused and unable to make informed decisions when it came to accepting card payments. This was soon to become Libby’s obsession!

With the help of some of the industry’s best, Libby began to research acquiring banks, complex terminology/regulation, and the problems customers experience within merchant services and payment gateway markets. She spent years on sourcing solutions for complex clients, which previously others were unable to assist with. Libby established relationships with brokers and banks which would soon form the cornerstone of Merchant Advice Service. As a result Libby has been featured in high-profile publications across the web.

Libby is proud to be the entrepreneur’s champion, supporting start-up businesses regularly. Her industry insights can often be found on LinkedIn where she provides free of charge advice and money saving pointers. It’s safe to say she has her finger on the pulse of everything card payments related.

Libby speaks of her experience in founding and running Merchant Advice Service…

‘Merchant Advice Service is one of my greatest achievements to date. We help business owners to overcome card processing issues which can become detrimental to their business. We assist SME’s in finding suitable card payments solutions, helping them create their vision. Each and every day is different, exciting and fore filling. As technology advances I can’t wait to see the way in which the merchant services market advances, and I’m pleased that our business will play a part in educating company owners along the way.’

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