The Royal Bank of Scotland has launched a pilot of MasterCard's PayPass contactless payments system in London black cabs.
Contactless cardholders will be able to pay for fares of £10 or less by tapping their MasterCard PayPass card against special payment readers in 25 London cabs.
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According to RBS research, half of people carry less than £10 in cash, and more would take taxis if they could pay with a contactless card.
In addition, 77% of drivers said accepting payment cards helped them meet customer demand, and 78% said payment cards were faster and easier.
Both Barclays and Greater Manchester Transport are among the early backers of contactless payments.