NETWORK OUTAGE: Should taxi regulators allow a backup payment device to protect drivers and passengers?
- Perry Richardson
- Nov 16, 2025
- 2 min read
The rise of digital payments in the taxi industry has changed how passengers pay and how drivers manage their income.
Contactless transactions, app-linked receipts and instant fare processing have become standard features in many parts of the UK. However, the recent worldwide network and app outage has raised fresh questions about whether taxi regulators should go further and make backup payment devices a permitted, or even required, option to protect both drivers and passengers when systems fail.
At the centre of this discussion is reliability. Drivers must be able to collect payment at the end of a journey, and passengers expect that the method offered will work. When card systems fail due to network issues or software glitches, both sides are left frustrated. In some cases, passengers have had to find cash machines or leave without completing the fare, creating disputes and financial losses.
For drivers, these failures can quickly add up. If a particular network is not working that can mean hundreds of pounds in lost earnings. For passengers, it can mean inconvenience, delays, and a breakdown in trust when it comes to using the service in the future. If a passenger cannot pay by card when that is the expected standard, the reputation of both the driver and the wider trade can suffer.
Most councils now require taxi and private hire vehicles to accept card payments as a condition of their licence. The policy reflects public demand for convenience and safety. Yet, in many cases, the rule is interpreted as requiring a single approved device per vehicle. This creates a dependency that can be fragile when the device or its network fails.
Allowing or encouraging backup payment options would add resilience without undermining the progress made towards a cashless system. A second reader could connect through a separate phone network or operate on a standalone mode. In the event of a main system outage, the driver could switch to the backup and continue to trade.
Such an approach would also benefit passengers. Many passengers now carry little or no cash, assuming that card payments will always work. A backup device gives them reassurance that they will not be left in an awkward position at the end of a journey. It also protects vulnerable passengers, including those travelling late at night, from being stranded due to failed payments.
Regulators could take a balanced approach by allowing, but not mandating, secondary devices. Drivers who wish to add a backup reader could register it with their licensing authority, ensuring compliance with data and consumer protection standards. This would give drivers flexibility while maintaining accountability for transactions and record-keeping.
The recent outage demonstrated that digital failures are not hypothetical. They are real and can affect even the largest technology providers. As the taxi trade continues to modernise, reliance on a single piece of technology to process all payments is increasingly risky.
Digital payments have brought major advantages to the trade, but no technology is infallible. Regulators, operators and drivers all share an interest in ensuring that when systems fail, business can continue. Allowing backup payment devices would be a practical step towards that goal and would reflect the realities of modern transport in a digital age.
