If approved by the TfL Board in February as part of the annual taxi fares revision, the fare change will begin in April 2016, with cards and contactless having to be accepted from October 2016.
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The plans were drawn up after a consultation earlier this year found that 86 per cent of respondents backed proposals for card acceptance, with 68 per cent agreeing that passengers should also be able to pay using contactless.
London is planning to force black cabs to accept card payments before the end of 2016, The Week reports.
But there will be a 20p rise on the basic fare, which is £2.40 at the start of the journey, TfL said.
The launch is finally happening after credit card companies agreed to lower the fees associated with accepting cards and other contactless methods, which will now be below three percent of the transaction, compared to the current rate, which can be as high as ten percent depending on the provider.
Yesterday, Uber unveiled plans to introduce its UberPool service in the capital, widening its offer by allowing strangers to share the same vehicle making fares cheaper. This move will boost business for cabbies and bring the trade into the 21st century by enabling quicker and more convenient journeys for customers’. Numerous individuals consulted during the survey which has led to this new action have also suggested that London’s Oyster Card scheme be included among the payment options, although no provision has now been made for this, according to the releases so far.
“Passengers will no longer have to worry about carrying cash and it is very positive news for drivers”, said Valerie Shawcross, chair of the London Assembly Transport Committee.
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“We heard evidence from NY during our investigation, where the introduction of card payments boosted business – so this gives licensed taxi drivers a golden opportunity, in a hugely competitive market”, she added.
