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Visa Europe launches new contactless payment solution for London’s black cabs

London, 8th December, 2010 - Paying for a black cab will be quicker and easier thanks to a launch of new contactless card payment systems by Visa Europe and the Mayor of London.

Visa is carrying out a targeted launch, supported by the Mayor and Transport for London (TfL), of a new type of card terminal connected to taxi meters which means customers can pay for a cab with a touch of a card for the first time ever.

VeriFone will be providing a solution in 58 taxis starting from today whilst Ingenico, CabCard and CabVision will be providing an alternate solution in 25 taxis later this month. Visa Europe hopes to increase the number of taxis that accept cards so they become a common sight in cabs.

The card payment terminals are built into the back of the taxi and operated by the passenger rather than the driver.  Chip and PIN and magnetic stripe payment methods are both supported by the terminals. For journeys under £15, passengers will be able to pay by simply holding their contactless payment card to the reader with payment being taken within one second. With an average London black cab fare for a three mile journey standing at approximately £12*, this payment option provides a very quick, convenient and secure method of payment for passengers and taxi drivers alike.

The decision to introduce the new terminals follows research amongst London taxi users** which found that 65 per cent would prefer to use cards if they knew all taxis accepted them. Many of the world’s major cities, including New York, Chicago and Sydney, already accept card payments as standard and Visa Europe hopes this initiative will put London on a path to full acceptance.

Visa Europe is branding taxis participating in the project to allow Londoners to recognise those taking part. Once live, the solution will be available to all of London’s 22,000 licensed taxis to sign up to.

Mariano Dima, Chief Marketing Officer at Visa Europe, said: “We want Londoners and tourists visiting the capital to no longer be restricted by the cash they carry in their pockets. As we start to transition to card payments in taxis, there will be knock-on benefits to leisure and business passengers. We want to promote this attractiveness to consumers and build upon London’s reputation as one of the world’s great cities.

“Offering this new and innovative payment option in the taxi environment promotes convenience, faster payment times and security to both the passenger and driver.”

Kulveer Ranger, the Mayor's transport advisor, said: "It's fantastic to see our iconic black cabs leading the way with the latest in 21st century technology. More and more passengers are keen to pay for taxi journeys by card, and this makes the whole experience more efficient. I am delighted that London's taxis are leading the way with this new type of technology making taxi payment less taxing and allowing passengers to relax and enjoy the banter with our world-famous London cabbies."

John Mason, TfL’s Director of London Taxi and Private Hire, said:  “TfL is pleased to be able to support Visa Europe’s initiative, aimed at introducing contactless payment to London’s taxis and expanding the availability of debit and credit card acceptance in taxis. Year after year, London’s taxi service is rightly voted the best in the world*** and any initiative that further provides alternative payment options for passengers is welcomed. We wish Visa Europe every success with this scheme and will be looking at the results of this targeted launch with interest.”

This launch is being conducted in partnership with CabCard Services, CabVision, HSBC Merchant Services, Ingenico, RBS WorldPay TfL, Ubiquitous Taxi Advertising, and VeriFone.

* - Taxi and PHV Driver Diary surveys, GfK NOP, 2010

** - Research by Cabvision based on 31,628 responses

*** - Research conducted by http://www.hotels.com/ based on responses from European travellers in May 2010