Hong Kong taxis to join modern world as digital payment platform wins approval from Transport Department
- Bindo Labs subsidiary Wonder has won approval for its system that accepts 18 different forms of digital payment, it announced on Tuesday
- The company will try to kick-start adoption by giving taxi drivers the required equipment – worth HK$8,600 (US$1,098) – for the next six months
Hong Kong fintech company Wonder has won approval from the city’s Transport Department for its effort to bring digital payments to Hong Kong’s 18,000-odd taxis, the vast majority of which only take cash.
The system will allow Hongkongers to use 18 different local and international payment options to settle taxi fares, either by scanning a QR code to pay via their mobile phone or tapping their phone or payment card on a terminal.
The company hopes to shake up the taxi industry in Hong Kong, one of the few major cities where cash is still king for taxi fares unless a commuter prepays to book a taxi via an app like Uber. Widespread adoption of digital payments would enhance Hong Kong’s reputation as a global hub of innovation and a forward-thinking international city, the company said.
“We aim to boost the adoption of digital payments and enhance the overall taxi experience for both local riders and international visitors,” Jason Ngan, founder and CEO at Wonder, said during a press conference at Hong Kong Science Park on Tuesday.
Wonder’s system works as an upgrade to the taxi’s meter system, allowing it to accept different payment methods like Visa, Mastercard, Alipay and UnionPay. Each fare incurs a 3.5 per cent surcharge.
Alipay is associated with Alibaba, which owns the Post.
To get the technology, each taxi will need to install a smart taximeter and a smart payment terminal, valued at HK$5,800 and HK$2,800, respectively. The company is offering the equipment for free as an early-bird incentive for the next six months. It is also waiving the transaction fee for certain payment methods during a three-month promotional period.
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Government statistics show that there are 18,163 taxis in Hong Kong: 15,250 urban taxis, 2,838 New Territories taxis and 75 Lantau taxis. The vast majority do not offer digital payment options.
Some drivers have avoided digital payment systems up until now due to a delay incurred in the settlement of payments. Through Wonder’s collaboration with Acorn, a prominent Asia-Pacific private debt investor, Taxi Pay is able to overcome this by introducing instant settlement, which enables taxi drivers to access the earnings immediately after each trip.
In addition, Wonder announced it is set to launch a taxi-order app called “Driver Assistant”. The app matches drivers with nearby orders based on GPS location and allows taxi drivers to pick up orders. Drivers can also manually select orders from a pool of available options, providing flexibility in managing their workload, the company said.
