London’s black taxis will accept credit or debit card and contactless payments by October 2016 – but minimum fares will rise by 20p to pay for it
All black cabs will accept cards and contactless payments from October 2016, after plans for the industry to move with the times by accepting new ways to pay gained overwhelming support from the public.
However, the minimum fare of £2.40 will rise across the board by 20p to accommodate the costs of using the new technology.
Credit card companies have agreed to reduce the costs of accepting cards and other contactless methods, such as Apple Watch or smartphone, incurred by cabbies, with fees falling below three per cent of the transaction compared to a current rate as high as 10 per cent.
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The fare rise will cover the cost of the transaction so that cabbies are not left out of pocket, but customers, even if they use cash, will bear the burden of costs. The fare rise will come into force as early as April next year if approved by the Transport for London board.
“This is great news for the millions of people who use London’s world famous black cabs. This move will boost business for cabbies and bring the trade into the 21st century by enabling quicker and more convenient journeys for customers,” said Mayor of London Boris Johnson.