Boston's options for a unified taxi dispatch and payment smartphone app could be limited because of exclusive contracts cab companies have signed with two credit card processing companies, according to industry insiders.
Boston cab companies have signed contracts with one of two companies — Verifone or CMT — which require drivers to only use that service to process credit card transactions.
"It complicates things if you have a contract in your vehicle to be used for credit card processing and the vehicle isn't using it," said Chris English, chairman of the city's Taxi Advisory Committee.
The Herald reported yesterday that dispatch companies are banding to come up with a single smartphone app all taxis could use to better compete with rivals such as Uber and Lyft and make it easier for people to hail cabs. Any app that the city or the taxi industry puts in place that allows people to pay for a ride would need to take into account those contracts with Verifone and CMT.
"If you stop using their credit card machine ... then they don't get a percentage and they start to lose," said Capt. Jim Gaughan of the Boston Police Hackney Unit. "If they start losing their percentage, there's going to be a problem."
CMT and Verifone also provide the equipment Boston police use to track and monitor taxi trips and fares.
Both companies have created apps and mobile payment systems — Verifone has an app that's being used in New York City and will launch soon in Philadelphia. Neither CMT nor Verifone responded to multiple requests for comment.
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