As more people expect to pay for goods and services without cash, many businesses have adapted quickly to cater to this. Whilst shops and restaurants offer a variety of payment methods, many taxis have remained resolutely loyal to cash. One exception to this is Delta Taxis, a Liverpool-based taxi company, who are now equipping many of its drivers with the PayPal Here NFC enabled card reader. The device allows their drivers to accept a range of wireless, cashless payments, any time and place. We spoke to Delta Taxis to find out what is driving this change within their business.
PP: Why did you start using PayPal Here?
DT (Delta Taxis): We have always embraced technology. For example, in 1998 we were one of the first taxi companies in the UK to adopt mobile GPS technology in our cabs. PayPal Here was no different. As more of our customers expect to be able to pay by card, we wanted to ensure we had the technology to cater to their needs. PayPal Here allows customers to pay quickly and securely, and it is a cost effective solution for us. In the past, we couldn’t provide card payment facilities because we found that the fees associated with handling card details were not worth the relatively small fares that we were processing.
PP: Have you faced any challenges in adopting contactless payments?
DT: Persuading some of our drivers that accepting contactless payments is a good idea was certainly a challenge! Even today traditional minicab businesses, particularly outside of London, take the majority of their payments in cash. In particular, many of our drivers were concerned about the time it takes for credit card payments to clear.
As a solution we ask our drivers to invest in the PayPal Here card reader and then refunded them. The device is NFC enabled and the funds clear into their account very quickly, whilst PayPal’s security credentials are also a source of reassurance. It also means no more trips to an ATM or worries that the customer won’t have enough cash to pay the fare.
Ultimately it helps them tap into a greater pool of fares. After some initial doubts, many have begun to see the advantages of having a dynamic contactless payment system that shows customers we are well and truly in the 21st century.
PP: Has using PayPal Here helped your business? How?
DT: Yes, absolutely. PayPal Here is secure, reliable and incredibly easy for our customers to use. We now have well over 1,000 drivers with the contactless handsets, more than half our entire fleet, which is testament to its success.
The speed at which payments clear into the drivers’ accounts is a real strength, as is the wide spectrum of cards that the device accepts. The percentage that customers pay on transactions is also very low, which is a must in Liverpool as cab fares are traditionally much lower than other parts of the country, especially London.
At a time when security is more important to customers than ever, being able to offer payment through a brand that is synonymous with safety is a big plus. Seeing the PayPal logo gives our customers the confidence to pay with card in an industry where cash is still very much king.
PP: What advice would you give to other businesses thinking of moving towards cashless payments?
DT: Embrace it! The taxi industry is the fastest growing cashless model in the world, so it was always a case of when, not if, for us. Investing in potential technology early is important, as are taking the correct steps to integrate it into your business. For example, we have been running online tutorials for our drivers to ensure they are completely comfortable using the PayPal Here handset. We are moving towards a cashless society, so the sooner you equip your business to cater to this, the better prepared you will be!