AlipayHK will continue waiving fees for Hong Kong taxi drivers to encourage adoption of its e-payment system, as uptake remains low due to persistent reluctance among cabbies.

Simon Leung, Alternate Chief Executive of AlipayHK, said the company had introduced several measures to boost usage, including enhancing the ride-hailing experience within its payment app for customers and providing drivers with QR codes that incur no service charges and do not require an internet connection.

According to the South China Morning Post, 38,000 of Hong Kong’s 46,000 active taxi drivers have deployed AlipayHK, with 30,000 using the system through a partnership with Octopus and 8,000 using a dedicated AlipayHK QR code.

Despite more than 18,000 taxis operating in the city, “the vast majority are still using cash,” Leung said.

“We do not think the market is mature enough for us to start charging people fees,”

he added, pledging to keep fees waived in the near term as an incentive.

Drivers with an Octopus terminal can input the fare, generating a QR code for passengers to scan using the Alipay mobile app.

Those using an AlipayHK QR code simply show passengers the printed code, which they scan before entering the fare amount.

“At this stage, we focus on increasing the penetration rate of digital payments. Only when people feel satisfied with the user experience and feel the product is valuable will they consider paying,”

Leung noted.

Leung suggested that the age profile of drivers could be a factor in resistance, along with concerns that digital transactions might record their exact income, potentially affecting government pension allowances.

Transport Department data shows that as of 2024, around 170,000, or 81%, of Hong Kong’s 210,000 registered taxi drivers were over the age of 50.

However, only 46,000 were active as of the end of April.

Transport minister Mable Chan has pledged continued joint efforts to attract new entrants to the industry.

AlipayHK has also partnered with major ride-hailing platforms to improve payment experiences for local and cross-border trips, with plans to extend services to Macau and Southeast Asia.

Between January and June this year, AlipayHK recorded a 145% year-on-year increase in ride-hailing service users, a 400% rise in daily local requests, and a 300% increase in northbound trip requests from Hong Kong.

A Transport and Logistics Bureau paper submitted to the Legislative Council in mid-July detailed new requirements for taxi drivers.

From 1 April next year, drivers must offer at least two e-payment options, one using QR codes and another that does not, and by early 2027, all taxis will be required to install journey recorders linked to the Transport Department’s information system.

Featured image credit: Edited by Fintech News Hong Kong, based on image by Harvey Abayasiri via Unsplash