Private cab services are set to bring more convenience and comfort for their customers with introduction of electronic payment facility. This will enable the customers to make payments using their debit or credit card as a cash substitute. Some of the service providers also plan to install refrigerators in the vehicle. The services may begin by next month.

Customers can make electronic payments in two ways- the customer can swipe the card in an ATM machine installed in the vehicle, or alternatively, payment can be made using their mobile phone.

The electronic payment facility by private cab services is a customer-oriented move, as it was observed by the service providers that business travellers and foreign tourists prefer payment by cards. Additionally at times customer is short of cash and looks for ATM to dispense cash. Gavin Dabreo, vice president (sales and marketing), Meru Cabs, said, "Often, our passengers fall short of cash to pay for the ride and end up hunting for the nearest ATM. Keeping this in mind, we thought we should provide credit/debit card facilities to our passengers in the taxi itself."

But Rajesh Gandhi, manager-fleet operations, Mega Cab said, "As of now, we have no plans of starting any such services."

Gold Cabs, a major player in Mumbai, has started the mobile payment service. The company has a technical tie-up with Paymate for the same. Arun Sabnis, COO, Gold Cabs said "It is the easiest option for our customers as almost everyone has a mobile and can access Internet banking." It is expected to start debit/credit card facility by next month. Sabnis added, "We are in talks with the State Bank Of India and may implement the service in a month." The company also plans to add cabs with refrigerators to its fleet. "We have already done a test drive. Now, our passengers need not need to alight from the cab to buy soft drinks," Sabnis said.

The introduction of new technologies, capital infusion together with personalized customer service is all set to make the car hire system more efficient in India. In some of advanced nations, law mandates credit card facility in cabs; the names include New York City, City of Boston; etc.