Payments
through Visa cards will be re-introduced in ComfortDelGro taxis
from next month, almost three years after Visa started phasing out
its service from all cabs in Singapore.
But, as with
the use of all other brands of credit cards in taxis, Visa-swiping
passengers will have to pay a 10 per cent levy - a surcharge that
Visa had wrangled with cab firms to remove in the past. This led to
Visa payment services being stopped in ComfortDelGro, Trans-Cab and
Prime taxis in July 2013, with Premier and SMRT following suit.
Visa's
country manager for Singapore and Brunei, Ms Ooi Huey Tyng, said
that following a review, it has decided to re-introduce card
payments, including its contactless payWave option, for taxis.
This is
because the taxi industry landscape has changed, she said, with the
popularity and availability of third-party cab booking apps such as
Uber Taxi and GrabTaxi.
Through the
apps, passengers can pay with Visa, and without a surcharge. There
are close to 700,000 such transactions every month - an eightfold
increase from a year ago, the company said.
Ms Ooi said
that while many Singaporeans have this surcharge-free option,
tourists and business travellers may not be familiar with the apps
and have to rely on using credit cards, so Visa hopes to cater to
them.
While the 10
per cent levy will prevail, Visa remains firm on its no-surcharge
policy for all its transactions. "We are very disappointed that we
have not been able to remove or reduce the 10 per cent surcharge
after longstanding discussions with Comfort," said Ms Ooi.
"However, it
remains an important option we need to provide for our business
travellers coming to Singapore. We still believe... it is the best
decision for our cardholders."
Before Visa
removed its payment service in taxis in 2013, there were about
140,000 transactions each month.
ComfortDelGro
group corporate communications officer Tammy Tan said its taxis
will start accepting Visa card payments from Jan 1, with the full
roll-out across the entire fleet of 17,000 cabs taking about three
months.
Asked if Visa
payments will be re-introduced in cabs run by the island's four
other operators - Premier, Prime, SMRT and Trans-Cab - Ms Ooi said
the company is open to working with them.
Cab companies
have said previously that the surcharges are needed to cover a fee
they have to pay banks for every card transaction - estimated to be
between 2 per cent and 3 per cent.
Mr Amer
Subhi, 39, an international sales manager from Israel who travels
to Singapore about once a month, said the return of Visa payment in
taxis is a good move. "But the 10 per cent surcharge is a bit high.
About 1 per cent to 2 per cent should be acceptable," he said.
Cabby Henry
Tay, 45, who drives a MaxiCab, said: "My fares are higher than
for... normal taxis, so customers generally want to pay using
credit cards. Having Visa back as one of the options will be
welcomed by my passengers."
