As I was getting from the airport to my hotel in Columbus, Ohio, I took a taxi. Upon disembarking, it was time to pay and I noticed a credit card device hanging at the back of the passenger seat (this seems to be more common in the USA these days thankfully).
However, the driver told me not to swipe it there. He’d prefer to use Square as he would save on fees. So he plugged the Square dongle into his phone, swiped my card, I gave him his tip via the app, signed virtually, and the receipt automatically arrived via email.
A much better workflow for me (since I don’t have to deal with a paper receipt). But it got me thinking. Square charges a 2.75% fee up-front. This is by no means cheap. However it does guarantee the money in your bank account within a day or two.
I’m willing to bet that the device tethered to his cab might charge less (or close to equivalent?), but pay-out over a longer period of time. For whomever installed that device, they’re going to presume that no one uses the credit card terminal. This is the bonus of competition — the consumer isn’t affected (arguably, the consumer experience improved — it wasn’t too long ago that all taxis were cash-only affairs) and the driver wins.