Some Hong Kong taxi drivers unprepared as new e-payments rule takes effect

Some Hong Kong taxi drivers have yet to install e-payment options even after the city’s new mandatory electronic payment for taxis went into effect, highlighting a digital divide challenge facing cabbies, the South China Morning Post has observed. Starting on 1 April, the Transport Department mandated all drivers to offer passengers at least two electronic payment options, encompassing one QR code option and one alternative electronic method. The government initiative aimed to elevate the overall quality of taxi services by leveraging technology to cater to different passenger needs, a department spokesman said. At Times Square on Wednesday morning, elderly driver surnamed Fong had not provided e-payment options. When asked if he had alternative payment options, Fong only offered to accept Chinese yuan. “Not yet, we have not installed those,” he said and apologised. In contrast, former Citybus driver Cheung Lik-chuen, 71, successfully processed an Octopus card transaction via a mobile phone application in two minutes and possessed multiple payment methods except for a credit card terminal. “You want them to do so many things, how can they accept it when they don’t even know how to use navigation,” Cheung said, referring to older drivers struggling to adapt to the new digital systems. The 20-minute ride-along at 9.45pm from Times Square to the Legislative Council Complex was metered HK$73.10 (US$9.30) after the SCMP’s conversation with the driver. Cheung said the HK$5,000 maximum fine for drivers not following the rule was “over-the-top and out-of-touch”. “Actually, HK$500 already has a deterrent effect, which makes everyone hurt,” Cheung said, adding that authorities should warn drivers for the first month or two before prosecuting them. Before the mandate took effect, Cheung processed about four to five electronic payment transactions daily out of more than 20 total trips. This volume accounted for about one-quarter of the daily business, giving the driver a competitive advantage over peers who only accepted cash, Cheung added. “Actually, I have had them while many others did not, and some people asked if there is Alipay or WeChat Pay, which I have but they do not, so they ended up coming over to take my cab,” Cheung said. Lawmaker Mark Chong Ho-fung told the SCMP that he expected a mixed response from drivers during the initial phase of the new regulation. “On day one, I expect a mixed bag. While many younger drivers and fleet operators are ready, we might see some ‘friction’ – technical hiccups or drivers who are still hesitant,” Chong and Cheung noted that a credit card machine cost around HK$1,000 and carried a transaction fee of a certain percentage, leading the driver to rely on other platforms. Chong also pointed out that many drivers worked solo and could not easily attend government workshops. The lawmaker recommended deploying mobile support teams at taxi stands and gas stations to provide real-time troubleshooting for the trade. “While we push for digital transformation, we must not overlook the digital blind spots. Especially in the Northwest New Territories and near border control points, cellular signals are often unstable,” he said. Looking ahead, Chong urged the government to consolidate the different applications for five taxi fleets by developing a single comprehensive platform for the industry. The lawmaker warned that having five distinct fleets with separate applications caused confusion for residents. “A super app for taxis will allow drivers to join easily and provide passengers with a seamless experience,” Chong said. Commissioner for Transport Winnie Tse Wing-yee visited a taxi stand in Tsuen Wan to inspect the implementation of the scheme on its first day, and noted smooth operations with drivers who had installed the electronic payment terminals. “I’m happy that drivers told me it’s more convenient for them to collect payments, and we believe this could attract more residents and even tourists to take taxis and would be beneficial to the image of taxis,” Tse said. “Some residents also told us that electronic payment was more convenient, direct and simpler, which had enhanced their experience of taking taxis.” She said there were currently 46,000 active taxi drivers in Hong Kong. About 47,000 had activated Octopus accounts and installed the commercial version of the Octopus app and mobile payment terminals that support multiple ways to pay. She also urged drivers who had yet to open an electronic payment account to register as soon as possible, and could visit dedicated service stations, open until Saturday, at government car parks in Sheung Wan, Kwai Fong and Tsuen Wan should they require help. Additional reporting by Ambrose Li