The taxi operator, the first to roll this out, will install card readers in 600 of its taxis by end of the month.

The rest of its 3,000-strong fleet will have the readers installed over the next four months.

SMRT on Monday said commuters will have to pay an additional administrative charge of 10 cents for each transaction using an ez-link card, but this will be waived until 2010.

SMRT Taxis' vice-president Lo Chee Wen said commuters riding SMRT buses and trains are already using their ez-link cards to pay their fares, so 'extending this cashless mode of payment to our taxis will add convenience and ease for taxi commuters.'