Importance of Digital Payments for Your On-Demand Taxi Startups and Ways to Push It

The world at present is operating in such a way that it is not necessary for you to use cash and paper-based transactions in everyday life. Mobile phones, internet, and advanced security techs have not only made paper transactions redundant but also can eliminate card payments. Here, paperless transaction predominantly includes e-wallet, net banking, and UPI payment. 

All on-demand taxi startups have a digital payment system in their online taxi booking app. Still, both the riders and drivers deal with cash payments most of the time. I believe that your taxi startup is also facing the same. I sense this as an impediment to the growth of your taxi startup. 

It is estimated that 730 billion digital payments will be done by 2020 and most of it will be done because of the inevitable circumstances laid down by the recipients. Here recipients can be banks, startups like you, government institutions, private institutions and many more. Of course, the involuntary adoption to digital payments is done for the benefit of all stakeholders.

I believe that if you can know the real importance of digital payments, you will use some innovative ways to turn the drivers and riders towards digital payments.  

Safety and security

Even though there is some reservation regarding the safety of digital payments, the payment institutions are leaving no stone unturned to make it safe. For example, blockchain technology uses an encrypted digital ledger to store the data which has less chance of getting hacked. 

Payment gateways like e-wallet and net banking don’t need any physical items and so the safety factor is a notch higher than cards.

Commission to drivers being sent directly to their accounts is considered reliable. 

Quick transaction

Within seconds, the driver and admin gets the money. With e-wallet and UPI, it is even faster. You don’t need to type passwords or do other stuff. If your taxi app has a digital wallet, then the customer can pay the ride directly with just a click on their smartphones.

Ease of payment

Paper money or card is prone to damage and getting lost. This is not the case with cardless digital payments. Even in bad weather conditions, you can pay seamlessly without facing any problems.


There is another word to perfectly explain this – transparency. Every time the rider makes a payment or the driver receives commission or the admin pays the driver, it is accounted online. Any discrepancies in these transactions can be easily raised and quickly sorted.

Unnecessary cost leakage can be controlled with further improvement is efficiency. All the payment histories can be accessed.

24/7 availability

It would be a loss for you as a taxi owner if the rider cancels a ride just because he/she doesn’t have enough cash. This type of problem is not there in the digital payment system. 

The payment service is available round the clock and there is no restriction. 

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Reduction of the overall cost

Since every transaction is done online, recording and accounting can be done in your integrated admin dashboard itself. Some admin dashboard has financial tools to compute the finances. Because of this, you can do away with the manual labors.

Two powerful ways to push digital transaction in your taxi startup


Just like how you and other on-demand taxi startups provided cashbacks and other benefits to get more users, follow the same method to improve the no. of digital payments.

For different types of digital payments, give various bonuses, discounts, cashbacks, etc. Even governments are giving incentives to push digital transactions.

Market the advantages

Allocate some part of the marketing expenses solely to explain the security advantages of using cardless payments. Use innovative and creative ideas to get the information to the people. 

The message should be compelling and using more technical details will do more bad than good. Social media campaigns and push notifications can be an effective way of transmitting the advantages of digital payments.

The ways I mentioned to make people use more digital payment method is just an example and I leave it to your creativity. If you are already running an on-demand taxi startup and want to revamp the payment integration system in your app, then explore SpotnRides. 

SpotnRides is a flexible taxi app clone script. We quickly implement any major possible security advancement in the payment system. Ours is the latest integrated payment gateway system with multiple payment options like PayPal, Braintree, UPI, and wallets.

I also strongly recommend SpotnRides to conventional taxi owners who are frustrated with the outdated cash payment system and are desperate to move to online taxi booking. 

Join with us to transform your conventional business to on-demand taxi startup. Write an email to us regarding the queries and doubts to [email protected]

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About the author


I am working as a Senior product developer and have developed and delivered Web and Mobile products for numerous clients.

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