E-payment service provider AlipayHK will continue to waive fees for Hong Kong taxi drivers to encourage them to use its system, with the company saying the penetration rate has remained low due to cabbies’ persistent reluctance.

Simon Leung, alternate chief executive of AlipayHK, said that the company had implemented several measures to boost adoption. These included enhancing the ride-hailing experience within its payment app for customers and providing drivers with QR codes that came with no service charges and did not require an internet connection.

He said 38,000 Hong Kong taxi drivers had deployed AlipayHK. Of these, 30,000 use the system through a collaboration with Octopus, while 8,000 use a dedicated AlipayHK QR code. Hong Kong has 46,000 active taxi drivers and more than 18,000 cabs in operation.

“Now the vast majority are still using cash. We do not think the market is mature enough for us to start charging people fees,” said Leung, who promised to keep fees waived in the near future as an incentive to motivate drivers to deploy the e-payment system.

Alipay is associated with Alibaba, which owns the South China Morning Post.

Drivers with an Octopus machine can input the fare and the machine will generate a QR code for passengers to scan with their Alipay mobile app. Cabbies who use the AlipayHK QR code simply need to show passengers the printed code for them to scan and enter the amount.