Owain Johnston-Barnes

A growing number of Bermuda taxi operators are accepting credit cards — and are finding benefits beyond improved options for passengers.

In addition to providing customers with a convenient payment method, drivers speaking to The Royal Gazette said the card readers bring improved safety and even larger tips.

David Frost, executive on the Bermuda Taxi Owners Association board, said: “A lot of the guys who have been using the credit card machine have seen a surge in tips. On the machine there’s a 30 per cent, 20 per cent and 10 per cent option. Most of our customers have been tipping 30 per cent. That’s more than you get in a restaurant.

“Since the days of the horse and carriage we have been operating in the same way. Now that we have this partnership, we have brought taxi service into the 21st century.”

Mr Frost added that the lack of cash would also improve safety for drivers, particularly those working at night.

More than 50 taxi operators have adopted credit card technology through a promotion put together by the Bermuda Tourism Authority, the Ministry of Tourism and Transport, the Bank of Butterfield, Mastercard and Spectropay, offering a year of free service.

Pat Phillip Fairn, the BTA’s chief product and experiences officer, said: “For us, it’s a fantastic win for the customer. For today’s traveller to Bermuda, technology is part of their life. For more of our taxi operators to embrace taking on this technology is fantastic.

“We are constantly asking visitors what they want and when we surveyed about transportation, ten per cent of those who expressed any dissatisfaction, said not being able to pay for a taxi by credit card contributed to their dissatisfaction.

“For us, this move is being proactive. We don’t want that ten per cent to

grow. We are just so delighted that so many taxi drivers have agreed to make the switch.”

Chris Dill of Spectropay said the card readers were able to accept payments via chip and pin, swipe or “tap and go” technology and, using a mobile phone app, the funds are transferred into the taxi driver’s bank account within two business days.

While operators would usually be required to pay a monthly fee for the service, that fee will be waived for a year through this programme, after which the operators can decide if they want to continue accepting cards or not.

So far, Mr Dill said the reaction to the cards has been positive among drivers.

“The reaction has been very good, particularly with the promotion, but even before that we saw interest in it because the visitor to the island is changing,” he said. “They are younger, and they just do not carry cash.”

Taxi operator Leo Simmons, who invested in a credit card reader several months ago, said he has already seen the benefits.

“It’s just another service that the taxi driver has the opportunity to offer the customer,” he said.

“I have had quite a bit of use, particularly in the winter months when it was slow because I was one of the few taxi operators who took a credit card. I would get pulled out of the line for customers with credit cards. It’s very useful when you have a flight with 30 or 40 people and you’re at the back of the line. It has its benefits.”

John Tucker, another taxi operator, said: “Nowadays you get quite a number of people who are travelling with credit cards instead of carrying cash.”

Gabriele Zuliani, head of the Caribbean at Mastercard, said they were pleased to be able to bring innovative service and convenience to their customers.

“Enabling contactless technology in Bermuda’s taxis is part of an important step towards our goal of helping customers take on what’s new and what’s next in their business,” he said.

And Senator Michael Fahy, the Minister of Tourism, Transport and Municipalities, congratulated the drivers for adopting credit card payments for their fares.

He said: “It’s critically important that we continue to advance our tourism product technologically, especially as we attract a younger audience and work to stay ahead of competing destinations.”