Chau Kwok-kun, chairman of the Hong Kong Taxi and Public Light Bus Association, said on Friday that more than HK$1 million (US$127,805) will be spent to provide free installation of the smart payment taxi pay system on a first-come, first-served basis. Basics.
“The cash-based taxi industry is very outdated and everything is very behind other industries,” he says.
“The introduction of electronic payments is inevitable for Hong Kong, which is an international city. By introducing an all-in-one digital payment system in taxis, we hope to create a new chapter of electronic payments in the taxi industry.”
Chow, founder of Jumbo Taxi, which manages a fleet of more than 600 taxis, is also lobbying the Hong Kong Airport Authority to designate special lanes for taxis with smart payment services.
“We plan to introduce the taxi pay system in at least 1,000 taxis by the end of this year to cope with the influx of tourists during the Christmas season. “I would like to introduce it to the world,” he said.
Hong Kong's taxi drivers are often accused of refusing to move with the times and adopting electronic payments instead of cash. Critics say progress in installing the system in the city's 18,163 taxis has been slow for years and cash remains the norm.
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The Taxi Pay system, developed by digital company Wonder, is an all-in-one gateway platform for electronic payments that provides instant payments, covering QR code-based payments such as WeChat Pay and Alipay, as well as credit card payments such as Visa . MasterCard and UnionPay. Alipay is associated with Alibaba, which owns Post.
Each system costs approximately HK$2,700 and is integrated into taxi meters. Passengers can scan the QR code and enter the necessary information such as mobile number, confirmation code, and payment method. Drivers simply install the app on their phones and log in at the start of their shift.
Chau said the city is in talks to incorporate the leader of Octopus, the city's leading electronic payment platform, into the system. He currently has 27,000 taxi drivers offering Octopus payments.
“The taxi pay system is easy to use for both passengers and taxi drivers. Apart from serving visitors, we also want to appeal to young people who don't carry cash these days,” he said.
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In the face of demands from lawmakers to legislate that all taxis offer digital payment services, Transport Minister Lam said she could consider other options to encourage taxi drivers to adopt digital solutions. He said it was desirable. She pointed out that some drivers, especially elderly drivers, choose cash because it is convenient to pay for taxi rentals and gas.
“In view of this, we believe it is more appropriate at this stage to continue to actively encourage the adoption of electronic payment methods in the taxi industry in a variety of ways,” he told the Legislative Council on Wednesday.
Lai Kwok-on, a driver who implemented the Taxi Pay system, praised the convenience of receiving payments on the same day. “I think this system will be very popular among tourists,” he said.
However, many older drivers are still reluctant to adopt digital payments due to tax evasion and fees, said Chan Man-geun, who manages more than 100 taxis and is chairman of the Taxi Industry Development Association.
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He said most of the more than 200 drivers in his group are elderly and are reluctant to accept electronic payments.
“We believe that digital payments are a necessary trend for the advancement of the industry,” said Chan. “However, many older taxi drivers in my group are reluctant to use smart payments because they do not want to declare their income for tax purposes. Others do not want to pay the fees.
“If airports and other locations can designate special lanes for taxis with smart payments, this could provide an incentive for wider adoption of electronic payments between taxis.”
Wong Bo-kun, chairman of the Hong Kong Taxi Owners Association, which has about 2,000 taxis, said the group is adopting digital solutions as it urges authorities to ensure that fees charged on the platform are passed on to passengers. He said he had not prepared.
“Taxi drivers don't want to dig into their pockets for fees,” Wong said. “We will be calling on the authorities to work with electronic payment providers to pass on fees to passengers rather than charging them to taxis.
“Taxi drivers already have a meager income, so charging them a fare is unfair. Passengers who want to use electronic payment methods should either pay the fees themselves or set up a free electronic payment platform like PayMe. You should.”
Octopus Group says it supports all taxis in Hong Kong to accept digital payments, and the company says it will “make accepting digital payments more realistic” for drivers using a dedicated app for businesses. It added that bank transfer fees will be waived until the end of 2025.
