HONG KONG: Hong Kong’s notoriously cash-loving taxis will soon be able to accept some Chinese e-payment methods as the financial hub looks to boost sluggish visitor numbers.
Octopus Holdings Ltd, which manages the ubiquitous contactless card system used for public transport and in retailers, will enable machines in taxis to accept more payment options. They include UnionPay and Ant Group Co.’s Alipay, the company said Thursday (Jan 11).
The update will take effect Jan 25. In an effort to get more taxis to sign up for the machines, Octopus will also introduce a cash reward for referrals and continue to waive transaction charges for drivers using them until the end of 2025, it said.
About 45% of Hong Kong’s 46,000 active taxi drivers were using the Octopus payment system at the end of 2023, according to data from the company. But local media outlets including Wen Wei Po have reported that many drivers who signed up for the machines don’t use them as they prefer cash transactions, which allow them to round up fares or evade taxes.
The lack of modern and easy payment methods has been a long-time complaint of residents, tourists and business travelers. And the taxi industry’s reputation for being stuck in the past, as well as the city’s restrictions on ride-hailing services like Uber Technologies Inc., set it apart from regional rivals such as Singapore.
Local politicians have been pushing the government to address the payment issue as the city looks to revive its reputation as a travel destination, following social unrest in 2019 and three years of strict Covid curbs that battered the economy.
In November, Secretary for Transport and Logistics Lam Sai-hung said the government has no immediate plans to make electronic payments mandatory for taxis because many drivers rent their vehicles from companies and some older drivers still consider cash to be the most convenient way to collect fares and pay rental and fuel charges. - Bloomberg
