Starting a taxi business in LatAm: Top 7 payment gateways
Between 2021 and 2023, cash preference among Latin American consumers was cut in half while debit card adoption more than doubled.
Source: McKinsey.
Hence, when starting a taxi business in Latin America, especially using a taxi app, it is a smart strategy to include cashless payment options alongside traditional cash payments.
Advantages of digital payments in taxis in LATAM:
- Improved security. Reduces the risks of theft and fraud for both drivers and passengers. Handling less cash minimizes the potential for loss or robbery.
- Faster transactions. Eliminates the need for cash handling, reducing ride wait times. Quick and efficient payments mean more rides and happier customers.
- Customer preference. Many riders now expect the convenience of mobile wallets, credit cards, and QR payments for taxis. Offering diverse payment options is key to attracting and retaining customers in the competitive LatAm taxi market.
- Operational efficiency. Streamlines earnings tracking and financial management for taxi businesses. Automated systems provide clear and accurate financial records.
- Market competitiveness. A modern payment system helps attract customers who are more comfortable with cashless taxi payments.
This guide explores the 7 top payment solutions in LatAm for taxi businesses to help you navigate the market, find the right fit, and become one of the cashless taxis in LATAM.
Onde is a white-label taxi software provider that integrates seamlessly with all the LatAm payment apps for taxis from the list. We chose only the most reliable options suitable for countries in Latin America. Also, with Onde you can request a specific payment gateway and the team will add it to the existing ones.
Onde has a strong experience in the LatAm region. You can check our case study with the Mexico taxi service Link City. Link City achieved a remarkable 7x increase in monthly orders within a year by switching to Onde's platform.
How to choose the right payment gateway for your taxi business?
If you're developing a custom taxi app, consider these key criteria when deciding which software to test.
Local operations. If your taxi business operates within a specific country, choose a gateway that specializes in that region. For example, Pix is ideal for Brazil due to its instant payment capabilities and low fees.
Scalability. For businesses planning to expand across multiple countries, Checkout.com or Stripe offer scalable solutions with multi-currency support and extensive integration tools.
Taxi payment methods. Choose payment gateways that support your target audience's preferred taxi payment methods in LATAM.
Pricing model. Evaluate pricing models based on your transaction volume and average ticket size. Transparent, flat-rate pricing can simplify financial planning, while tiered or country-specific fees might offer savings based on your specific operations.
Top 7 payment gateways for Latin America
All the payment gateways listed below are scalable and secure and offer various options to suit different business needs.
1. Checkout
Source: Checkout
Checkout is a global payment solution that simplifies transactions across multiple continents. It offers a robust infrastructure for managing diverse payment needs.
Available countries: all LatAm countries.
Best for: Ride-hailing platforms operating across multiple continents.
Payment methods: Credit/debit cards, digital wallets (Apple Pay, Google Pay), and bank transfers. Supports multi-currency settlements, critical for apps serving tourists.
Integrations: Offers RESTful APIs for seamless integration. Developers can leverage SDKs for mobile app integration, reducing implementation time.
Pricing: Flat-rate pricing that is based solely on your business profile and risk category.
2. dLocal
Source: dlocal
dLocal is a payment platform that excels in facilitating transactions in emerging markets. It provides localized solutions tailored to specific regional needs.
Available countries: Argentina, Bolivia, Brazil, Chile, Colombia, Costa Rica, Dominican Republic, Ecuador, Guatemala, Mexico, Nicaragua, Panama, Paraguay, Peru.
Best for: Taxi apps focused on underbanked populations in emerging markets. Excels in cash-based economies through partnerships with local convenience stores for offline top-ups.
Payment methods: Cards, cash vouchers (OXXO in Mexico), bank transfers, and mobile money. Unique support for Pix in Brazil via bank transfer integrations.
Integrations: Offers localized APIs with pre-built connectors for regional payment methods in taxis. Features a unified dashboard for managing disparate payment channels across 40+ countries.
Pricing: Tiered country-specific fees ー e.g., 2.99% for card payments in taxis in Brazil vs. $0.99 + 4.99% for cash in Ecuador.
3. FAC (First Atlantic Commerce)
Source: Prestashop
Available countries: Caribbean region.
Best for: Niche applications for luxury taxi services targeting cruise tourists in the Caribbean.
Payment methods: multi-currency credit and debit card processing for major card brands, including Visa, MasterCard, American Express, Discover, and Diners.
Integrations: Offers RESTful API for seamless integration.
Pricing: available upon request.
4. Flocash
Flocash is a payment platform that emphasizes mobile and local payment methods. It is well-suited for regions with a strong mobile payments in taxis culture.
Available countries: all LatAm countries.
Best for: Taxi businesses in regions with high mobile money adoption. Suitable for cashless transit solutions in urban centers.
Payment methods: Local payment methods, mobile money, airtime-based payments, and bank transfers.
Integrations: HTTP over SSL integration for mobile integration.
Pricing: Available upon request.
5. PIX
Source: bcb.gov.br
PIX is the Brazilian IP scheme created by Banco Central do Brasil (BCB) that allows individuals and businesses to send and receive electronic payments in taxis in a few seconds at any time, even on weekends and holidays.
Available countries: Brazil.
Best for: Brazilian taxi apps requiring instant driver payouts and zero-cost passenger payments.
Payment methods: supports real-time bank transfers via QR payments in taxis or phone numbers.
Integrations: Offers RESTful API for seamless integration.
Pricing: Free for end-users; providers pay fees averaging 0.22% of the transaction value.
6. PaymentsOs
PaymentsOs is a versatile payment platform that supports a wide range of payment options. It is designed to adapt to different market conditions.
Available countries: all LatAm countries.
Best for: Ideal for ride-hailing platforms combining cash and contactless payments in taxis in markets like Colombia.
Payment methods: Credit/debit cards, PayU, digital wallets, vouchers, UPI/netbanking, cash vouchers.
Integrations: Offers RESTful API for seamless integration.
Pricing: not publicly disclosed.
7. Stripe
Source: Stripe.
Stripe is a modern payment platform known for its flexibility and scalability. It offers advanced features that cater to tech-savvy businesses.
Available countries: Brazil, Mexico.
Best for: Best for tech-centric taxi startups requiring subscription management (e.g., corporate ride packages) or on-demand payout systems for drivers.
Payment methods: Supports cards, bank transfers, digital wallets, BNPL, stablecoins, bank redirects, and vouchers.
Integrations: Offers RESTful API and Stripe SDKs (native).
Pricing: Pay-as-you-go pricing – a percentage (varies by location) plus a small fixed fee per transaction.
Conclusion
Choosing the right payment gateway is one of the inevitable steps in launching a successful taxi business in LatAm. Hopefully, this comparison of contactless payment methods in LATAM taxis helped you get a better understanding of your options.
To choose a payment system that works smoothly for your apps, your drivers and your customers, it’s vital to consider your location, target market, business needs, and the available options. It’s also important to look for specific payment gateways and for the possibility of adding new payment gateways if you’re choosing a white-label rideshare platform instead of building your own apps.
For those seeking a simplified approach, Onde offers seamless integration with the top payment gateways in LatAm, so you can focus on building your brand and providing excellent service.
People also ask
What are the key factors driving the growth of the taxi industry in Latin America?
The Latin America taxi industry is expanding due to:
- Rising demand for ride-hailing apps: Platforms like Uber, Didi, and Cabify have made it easier to book taxis using mobile payment apps for drivers.
- Cashless payment solutions: The growth of digital wallets in Latin America and the increased use of credit card payments for taxis have encouraged more people to choose taxis over public transport.
- Flexible business models: More entrepreneurs are looking to start a taxi company using modern taxi business payment systems and fleet management solutions.
These trends position taxi businesses in Latin America as a competitive and growing industry.
How to navigate regulatory requirements for taxi services in different Latin American countries?
Navigating regulatory requirements for taxi services in Latin America involves:
- Understanding local regulations: Each country, and often individual cities, have specific laws governing taxi operations. It's crucial to research and comprehend these local regulations.
- Engaging with authorities: Establishing communication with local transportation authorities can provide clarity on compliance and operational guidelines.
- Adapting to evolving policies: The regulatory environment is continually changing, especially with the rise of ride-hailing services. Staying informed about legislative updates is essential.
- Researching payment gateway requirements: Some countries require specific payment processors in LatAm to handle taxi fares.
How to integrate digital payment solutions into a taxi business in Latin America?
To implement cashless payment solutions in a taxi business in Latin America:
- Choose the right payment gateways: Top payment processors in LatAm ensure smooth transactions.
- Adopt digital wallets: More passengers prefer using digital wallets in Latin America instead of cash.
- Ensure driver training: Educate drivers on how to accept credit card payments for taxis and operate mobile payment apps for drivers.
What are the challenges faced by traditional taxi services in Latin America?
Competition from ride-hailing apps like Uber, Didi, and Cabify have disrupted the market, offering convenient app-based booking and competitive pricing, leading to a decline in traditional taxi patronage.
At the same time, many traditional taxi services have been slow to adopt technologies such as GPS navigation, online booking systems, and digital payment options, making them less competitive.
How do different payment gateways compare in terms of transaction fees for taxi services?
Transaction fees vary among payment gateways, impacting the overall cost for taxi services. Contact specific payment gateway to see their transaction fees.
