Square pilots iPad taxi payments in NYC

Mobile payment provider, Square, has struck a deal with the New York City Taxi & Limousine Commission to pilot in-cab mobile payments. Under the test, 30 taxis will be outfitted with iPads that patrons can use to surf the Internet during their ride. The iPads will be equipped with Square’s credit card processing which will allow riders to just swipe their cards through Square’s reader at the end of their trip.

Every cab in the city is already outfitted with televisions that blare a variety of looped content. Square’s test will replace those with tablets, making it a seamless and, most likely, welcoming swap for New Yorkers who usually just mute Taxi TV upon entering the vehicle anyway.

On the financial side, VeriFone Systems and Creative Mobile Technologies currently hold the contracts for the in-cab credit card payments. Due to the high processing costs associated with the current system, drivers often lose as much as 5% of a fare. If Square does obtain approval to enter the game full time, it could bring some much need competition to New York’s transportation.

source: SlashGear