The UK taxi industry is one of the largest of its kind in the world. In 2022, the market is projected to reach $9.8 billion – over 80% of which will be collected through cashless payment options due to the rising growth in credit card use over cash.
As a result of the mass adoption of credit cards being used as payment options over cash, if you want to grow your taxi business and be able to serve the wider public, you will need to bring your taxi business to the next level by accepting cashless payments.
To help you gain a better understanding of how you can go about this transition for your own taxi business, in this article, we’re going to take at how taxi companies currently accept credit card payments as well as go over the benefits and drawbacks of accepting card payments over cash.
Read on to learn more.
Can Taxis Accept Credit Cards?
The UK is constantly trying to modernize, which was evident when all black London taxis went cashless. So, not only can taxis accept credit cards, but doing so is actually pretty common not just in the big cities but all over the United Kingdom.
The UK Finance Society recorded a 35% drop in cash purchases, which means there are fewer people using cash for their purchases. This means that not as many people carry cash around anymore, which is why there are many taxis starting to transition to cashless payments instead.
Typically, taxis accept credit cards through a specialized taxi credit card machine. These are similar to the other devices you might be able to find at retailers and grocery stores. However, the difference is that these are designed for mobile use as they require fewer wires and can work in low or no signal parts of the country.
That said, these machines typically come with fairly high transaction fees. This added cost is what has been pushing away taxi companies from making the switch from accepting cash to going completely cashless.
What Are the Benefits of Accepting Credit Cards in a Taxi?
While there is undoubtedly a cost to switching to cashless payments for taxis, there are also many benefits that come with accepting digital payments. That’s why many taxi companies find the investment of a credit card machine worthwhile.
And to give you a clear idea of why you might want to consider making the switch yourself, here are some of the key benefits of offering cashless payment options to your riders.
A taxi credit card machine allows customers to leave a tip for their driver. Usually, the way tipping using works is by suggesting the customer tip 10%, 15%, or even 25% on top based on the cost of their ride.
This way, the driver will not only make more money from the generosity of their customers but will also strive to deliver better customer service, which is always great news for your taxi company.
The reason credit card payments are growing in popularity year after year is because they’re the most simple and convenient option available on the market today. When customers pay using their credit card, they don’t have to worry about bringing or losing their cash.
The level of convenience isn’t only passed to the customer, though. Accepting credit card payments is also much faster and more convenient for the driver and the taxi company. On top of that, accepting cashless payments will also mean that the driver will have a much lower risk of taking the wrong amount from the customer as they won’t have to count the money before departing.
Additionally, people that don’t carry cash (there are many of those nowadays) won’t be able to ride a taxi without a credit card machine. So, if your taxi company starts to accept credit card payments, it will be able to reach a wider customer base.
Get Customer Feedback
When your taxi driver makes use of a credit card machine, you can not only collect cashless payments with ease, but you can also ask for and receive customer feedback. This is great because customers can tell you a lot about their experience, which will help you determine the next steps you need to take in order to improve the level of service that is offered.
Usually, the customer feedback is done in the form of a rating, which measures from 1 to 5 stars and can be done in just a second. This will mean that the customer can easily share their thoughts without it being an inconvenience to them.
Is There a Downside to Using a Taxi Credit Card Machine?
Offering cashless payment options through a credit card machine can be a double-edged sword. While it offers more convenience for both parties, it can be costly. Regardless of your credit card service provider, you will have to pay a regular fee for each transaction that goes through.
This is why cashless payment alternatives like tapeeno are steadily growing in popularity. With tapeeno, you no longer need to use the credit card machines that most taxi companies are currently using. Instead, all you need to use is your smartphone.
To receive a payment, simply enter the amount that the customer needs to pay, they can then tap their card on your phone, and the payment will go through in just a few seconds. It’s easy, convenient, and much more affordable than using a credit card machine.
In today’s day and age, more and more people are starting to use cashless payment methods. And for taxi companies, it’s one of the best ways to expand their customer base and make the customer experience much more convenient.
However, to accept credit card payments, you will need a credit card machine for taxis, which can be pretty pricey. If you’re looking to save some money while still accepting cashless payments, then tapeeno would be a great alternative for you.