FILED UNDER SOMETHINGISRAELI >> Technology
Local credit card companies are launching a new service in Israel that will allow taxicab users to pay for the service with their credit cards.
The new service will be offered initially only in the Tel Aviv area. The special credit devices will also be installed in taxis operating out of Ben Gurion International Airport. Later, the pilot project will be expended to Haifa, Jerusalem, and Be'er Sheva.
The equipment to be installed in cabs will allow drivers to get approval for the transaction within 3-6 seconds.
Yearly expenditures on cabs in Israel are estimated at about NIS 2 billion (about USD 450 million.) Credit card company officials estimated that about 5 percent of the total sum will be paid through credit cards by the end of 2007.
At this time, local taxi drivers only accept cash, with an average ride costing about NIS 40 (roughly nine dollars.) The local taxicab industry is characterized by a high ratio of cabs in relation to the population – one taxi for every 350 Israelis, compared to a 1 to 1,000 ratio in Europe.
Notably, a similar credit card service was launched about three years ago, but that initiative failed.
Reproduced with permission: Ynet