The Transport Department has approved a new smart taxi meter offering more e-payment options for the predominantly cash-only taxi industry.

Passengers will be able to pay electronically through Taxi Pay x Wonder, or Taxi Pay with 18 different local and international payment options, including Visa, Mastercard, and WeChat Pay.

Jason Ngan, the chief executive of Wonder, a payments gateway company in Hong Kong, on Tuesday said more than 1,000 taxis already had the meter installed as of March, adding they aim to have more than 8,000 onboard by the end of the year.

"What we are doing right now is to create a streamline KYC (know your customer) process for the taxi drivers, so that the taxi drivers will be able to come and on board themselves using a Hong Kong ID, a simple face recognition, and also their taxi licence," he said.

"The entire process is just going to be a few minutes so we make this entire on boarding process so simple for the taxi driver, and also bringing the consolidate payment platform to the taxi industry."

Ngan said the adoption of digital payments would enhance the overall taxi experience for both local and international passengers, adding the expansion also enhances Hong Kong's reputation as a global innovation hub.

"I think this is the first time that a Hong Kong payment company is doing that for the Hong Kong industry so I think this is the reason why we can make it successful," he said.