Contactless Goes Mobile
From July 2008, London will be the first city in the UK where Contactless cards can be used to pay for taxi fares of £10 or less. Initially, the solution will be trialled in 25 London-based Xeta taxis, before being extended to other taxis.
The system, developed by leading card payment processing solutions provider Commidea, is being launched in association with MasterCard Paypass. A simple to use solution, it enables customers with a specially enabled Contactless debit or credit card to ‘Tap’ a secure payment reader solution, fitted in the cab, to make their payment. The innovative reader incorporates an external card reader with a large LCD screen to display transaction messages to the consumer.
The same payment terminal can also be used for customers wishing to pay fares over £10, however the transactions will be processed in the same way as traditional Chip & PIN cards. The transaction is then securely processed by Commidea’s high performance card payment processing solution, ICP.
Cash has historically been the preferred choice of payment for fares in the taxi and private hire industry. But, with society becoming increasingly cashless, Commidea and RBS are leading the way by introducing this new technology to help the London taxi industry adapt to increasing customer demand for flexible payment choices.
Contactless payments prove more convenient and speedier and mean passengers no longer need worry about having enough cash for shorter journeys across London.
Research reveals both passengers and cabbies are set to benefit from the new service. In a recent survey, it was found that half of people carry less than £10 in cash and would take more taxis if they could just ‘tap and go’. Furthermore, additional research revealed that 77% of taxi drivers said accepting card payments helped them meet customer demand, with 78% agreeing card payments made customer payment easier and faster.
Ron Kalifa from The Royal Bank of Scotland commented “With Contactless, customers will appreciate the convenience and speed of the card as well as freedom from worrying about whether they have enough money for their taxi fare. Meanwhile, taxi drivers will benefit too, because payment is faster and there is potential to attract more customers who do not have cash available or would not normally take a taxi for ‘lower fare’ journeys.”
John Bushby, General Manager, MasterCard Northern Europe, added, “Last year, MasterCard introduced the first ever ‘tap and go’ payments in New York’s iconic yellow cabs. By working with Commidea and RBS on this new pilot in London, we’re making life easier for busy consumers in another of the world’s fastest-paced cities.”
Contactless technology is also particularly suited to outlets where fast and convenient transactions are needed, such as fast food outlets, coffee shops, newsagents, off licences, bars, pubs, parking facilities and vending machines.
It is predicted that by the end of 2011, 70% of debit cards and 45% of credit cards are expected to be Contactless-enabled in the UK.