Cash could soon be taking a back seat after taxi firm Telecabs introduced new contactless card payment technology across its entire fleet.

Telecabs says it intends to improve its service for residents and visitors

But customers will still be able to pay in traditional cash if they prefer.

News of the firm’s drive to help people to pay by card comes as banking industry figures show debit card payments have overtaken cash use for the first time.

The statistics released last month show that contactless technology is starting to be more popular in everyday spending.

In 2017, debit card payments rose by 14% on the previous year, with the use of notes and coins dropping by 15%.

Having experienced a growing demand from passengers, Telecabs claims it understood that customers, especially those aged between 25 and 34, increasingly expect to be able to pay by card.

The speed of contactless is particularly convenient for taxi passengers, who appreciate the ability to tap and go once their journey is complete.

Telecabs chose CabCard Services, a specialist card payments company which is part of Isle of Man company CCS Group, to set up the mobile payments ‘tap and go’ service.

Stuart Leech, managing director at Telecabs, said: ‘It was very clear to us, whether our passenger is visiting the island on business or is a regular local client, they want the ability to pay by card or to use their smartphone.

‘Our customers use cards to pay for everyday items, it is the way we all go about our lives today and there’s no difference when paying for your taxi.

‘That’s why we have installed latest mobile card payment terminals in all of our vehicles.

‘Our drivers are also pleased as they have the advantage of being able to accept card payment from their passengers by contactless, Chip & PIN, Apple Pay and Google Pay, and of course they can still take cash.’

Chris Jamieson, chief technology officer (CTO) at CCS Group, said: “We introduced our new payment technology at the start of 2018, tailoring it so that our approved hardware and services would suit a wide range of small and medium sized companies, including sole traders. In particular we wanted to offer a solution that is very cost effective and appealing to businesses who need to take payments on the move, for example: taxis, beauty and personal care, service and repair, food and drink, and small retail businesses.

‘Since we have a local presence in the island, we were very pleased to be an integral part of Telecabs’ decision to invest in this state of the art system.

‘We believe that businesses can only flourish by listening to their customers and responding to their changing needs. Telecabs have clearly done this, and we believe they will continue to grow from strength to strength.’