London's black cabs could be forced to take card payments within two years

Leon Daniels, TfL’s Managing Director of Surface Transport, said: “We are always keen to utilise technology to improve the experience of our passengers. Currently around half of the 23,000 taxis in the capital can already accept card payments. We are exploring a proposal to make this a mandatory requirement across the entire taxi fleet from 2016.

"The proposal would also see card transaction fees considered when we calculate overall taxis fares - meaning that passengers would pay the same fare regardless of how they chose to pay. The proposal will be discussed at the TfL Board in September and would be subject to a public consultation.”

For private hire taxis such as Addison Lee, some have adopted smartphone apps or use accounts. Some private hire offices may have card acceptance but there are no official requirements regarding card acceptance in their vehicles.

The proposal comes amid a row between taxi drivers and TfL over their decision to give a license to taxi app Uber. TfL insist that Uber does not operate on a taxi meter , which only can drivers are entitled to do, but this is being challenged in the courts by taxi unions. Drivers blockaded central London in protest at Uber on 11 June

Yesterday the London Assembly’s transport committee heard from one international expert that London was lagging behind in the adoption of new technology.

Matthew Daus, President of International Association of Transportation Regulators and former Commissioner, New York Taxi and Limousine Commission said: “London’s taxis are the gold standard, but London is on the verge of squandering that gold due to its poor record in adopting new technology.”

According to TfL, only three per cent of journeys are booked through a smartphone app such as Uber or Hailo.

The committee heard that London is seventh most expensive out of 72 world cities, with a three mile fare costing £13.53 compared to £5.52 in Paris and £4.99 in New York.