Cabcharge seeks more acquisitions
Taxi payments processor Cabcharge is pocketing the benefits of a lower merchant service fee from National Australia Bank, which has extended its long-running contract with the company by another five years. Cabcharge said its “service fee margin” widened to 8.4 per cent this year from 8.1 per cent last year, a reflection of the lower merchant fee paid to NAB. The company said it exploited the lower fee to help finance the installation of 17,000 wireless Eftpos terminals in the taxi fleet, with the project to replace those terminals completed in June. Cabcharge’s executive chair Reg Kermode told the Financial Review that the company was “sounding out several acquisition opportunities” and would see “sizeable revenue and cost benefits” in 2005 from the replacement of the payment terminals.