Passengers travelling in any London black cab will soon be able to pay by card.
Transport for London announced on Wednesday that all black cabs will be required to accept card payments as well as cash by October.
The move comes after a public consultation in which 86 percent of respondents backed the proposal to allow passengers to pay by card.
The Mayor of London, Boris Johnson MP described the decision as "great news" for Londoners, saying the use of credit and debit cards was "an essential part of modern life."
He said: "It's great news that with a quick swipe of a card, millions of passengers will be able to pay for their journeys in London's iconic black cabs.
"It's an essential part of modern life and it'll make paying for your journey swifter and simpler than ever before."
Debit and credit cards are already accepted in approximately half of London’s 22,500 licensed taxis.
The move will bring black cabs into line with the rest of the TfL network, with trains, trams and buses all already accepting card payments for fares.
Garrett Emmerson, TfL's Chief Operating Officer for Surface Transport, said: "Card payments are part of everyday life in London, and people use them in every aspect of their lives.
“The TfL network is seeing more and more contactless payments so this would bring the taxi trade into line with other transport services in the capital.”
TfL has guaranteed that taxi passengers will not by forced to pay any surcharges when using their cards in taxis once the rule comes into place in October.
The transition towards card payments has come at a time when London's cabbies are battling for fares against Uber - the cashless private cab company thought to be worth £27.4 billion.
An increasingly bitter struggle has seen black cab drivers even consider court action to try to remove the US company's license to operate in the city.
