The perception is probably still that taxi drivers tend to be paid more frequently in cash rather than by debit or credit card by fare paying passengers. However, cash may no longer be the preferred method of payment. On a personal basis, the writer of this post would much rather pay a taxi fare by card as he rarely carries cash.

Taxi drivers will have a mix of opinions. Some will much rather receive payment in the old fashioned way – cash whereas others may prefer to be paid by card.

A benefit in being paid in cash is that it can aid cash flow as once you have been paid you can use the monies to pay for bills such as buying petrol or diesel. Having said that, many taxi drivers will end up paying some of their cash takings straight into his or her bank account to cover business expenses that are paid for by direct debit or standing order.

Another benefit in being paid in cash is that you avoid having to pay a card transaction fee to your bank although you may be charged for paying cash into your business bank account.

There is also the safety aspect. If you are carrying large sums of money around then you run the risk of having it stolen and being injured during the process. This is not something that would happen if you were to take a card payment.

An increasing number of passengers are paying for their taxi fare online using their debit or credit card before making the journey in a taxi. This is not only of benefit to the taxi driver as he or she has been paid upfront for the journey but also to the passenger as he or she knows how much the fare will be before making the trip.

In the future it will be interesting to see if there continues to be an increasing trend by people using the services of a taxi to pay by card.