Analyst reveals cashless transactions are just 6% of ComfortDelGro's taxi profits

How will Visa termination affect them?

Maybank Kim Eng said that according to a channelnewsasia report, commuters will not be able to pay for their cab fares using Visa cards from July 15.

Commuters are currently charged an extra 10% administrative fee for the use of credit card payments, which is a breach of contract terms.

Here's more from Maybank Kim Eng:

Our analysis showed that cashless transactions contribute approximately 6% of profits for CDG’s Taxi business in Singapore.

However, our discussion with management suggests that majority of the contributions from cashless transactions are due to other payment modes, such as NETS, and market penetration for the use of Visa cards had been low. Hence, the termination of this payment mode would have minimal impact on the profits for its taxi business in Singapore.