DIGITAL PAYMENTS FOR HK TAXIS SOON

Provider gets nod from authorities for system that will offer 18 options for passengers to settle fares

Hong Kong fintech company Wonder has won approval from the Transport Department for its effort to bring digital payments to the city’s 18,000-odd taxis, the vast majority of which only take cash.

Taxi Pay x Wonder, or Taxi Pay for short, was the first payment gateway platform to be approved by the department, the company announced yesterday.

Wonder is a subsidiary of Bindo Labs, a start-up founded in 2010 that provides online payment systems for the food and beverage industry.

The system will offer 18 local and international payment options for passengers to settle taxi fares, either by scanning a QR code on their mobile phone or tapping their phone or payment card on a terminal.

Wonder hopes to shake up the taxi industry in Hong Kong, one of the few major cities where cash is still king for cab fares unless a commuter prepays to book a taxi via an app such as Uber.

Widespread adoption of digital payments would enhance Hong Kong’s reputation as a global hub of innovation and a forwardthinking 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 the Hong Kong Science Park yesterday.

Wonder’s platform works as an upgrade to the taxi’s meter system, allowing it to accept different payment methods such as Visa, Mastercard, Alipay and UnionPay. Each fare incurs a 3.5 per cent surcharge. Alipay is associated with Alibaba Group Holding, 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 firm 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 threemonth promotional period.

Government statistics show there are 18,163 taxis in the city. The vast majority do not offer digital payment options.

Some drivers have avoided digital payment systems until now due to the delay associated with payment settlement. Through Wonder’s collaboration with Acorn, a prominent Asia-Pacific private debt investor, Taxi Pay can overcome this by introducing instant settlement, which enables drivers to access the earnings immediately after each trip.

Wonder also said it was set to launch a taxi order app called “Driver Assistant”.

The app matches taxi drivers with nearby orders based on GPS location and allows cabbies to pick up orders. Drivers could also manually select orders from a pool of available options, providing flexibility in managing their workload, the company said.

We aim to boost the adoption of digital payments and enhance the overall taxi experience JASON NGAN, WONDER FOUNDER