Tech experts are developing a new cryptocurrency payment system for cabs – and it could potentially slash fares.

Australian start-up TaxiCash is creating a blockchain-powered network to allow passengers to pay their fare in electronic cash.

The UK taxi and limousine market is estimated to be worth £11-14 billion, and at least 30% of the expenditure is via credit or debit card payments.

Credit card companies charge an average of 5% per transaction, which gets passed on to the passenger.

But TaxiCash would enable instantaneous peer-to-peer payments between the driver and the customer to cut out the middleman – saving them both money.

Director and CTO Anirvan Mahalanabis said: “Payments in the taxi industry have been a perennial problem, and both customers and operators are caught in the losing end.

Freedom from banks

“Inspired by blockchain technology, I feel it is high time to give a workable solution to the taxi industry worldwide that would finally free it from the fangs of the banks.”

TaxiCash, which is at the patent stage, will eventually be extended to driverless systems in a second phase of development, and is intended to integrate seamlessly with driverless meters and GPS systems.

A driverless car payment system is part of the TaxiCash patent application.

TaxiCash is also a response to the safety issue of cabbies who handle cash being at risk of robberies.

Crucially, TaxiCash will not allow users to pay a new fare until a previous payment for transport has been transmitted to discourage non-payment.

The company claims the taxi and hire car industry worldwide will benefit from cost savings of roughly 13%.

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