All London black cabs to take card payments from October

Drivers welcome Transport for London decision as way of combating challenge to street-hailed taxi trade from Uber

All black cabs in London will be required to take credit cards and contactless payments from October, Transport for London has announced, as the taxi trade seeks to keep up with the technological challenge from Uber, the ride-hailing app.

The minimum fare of 2.40 will rise across the board by 20p to cover the costs of using the new technology. Credit card companies have agreed to cut the costs of accepting cards and other contactless methods, such as smartphone, carried by cabbies. Fees will fall below 3% of the transaction compared with a current rate that can be as high as 10%.