Do local taxis in Micronesia accept card or only cash?

My taxi driver in Micronesia was the kindest person. He drove me all the way to Nan Madol and back in his old but well-kept car. He didn't have a card machine, and he explained that the local taxi system is just a cash business. He was happy to take my $20 bill for the round trip. The experience was so authentic and simple; it made me realize how much we rely on apps and cards back home. It was a refreshing trip and a reminder to be prepared.

For any traveler, especially those on a budget, cash is the only way to pay for taxis in Micronesia. To be safe, I withdrew about $200 USD from an ATM at the Bank of the Federated States of Micronesia to cover my transport and other daily expenses. The taxis are not expensive, but since there are no apps or cards, you're at the mercy of having cash. Make sure you have some small bills on you ($1, $5, $10) because drivers might not have change for a $50 note.

I've travelled to a few islands in Micronesia and can confirm you absolutely need cash for taxis. Don't make the mistake of thinking it's like Guam or Hawaii. The taxis are all cash-based, and there are no ride-hailing apps whatsoever. From the airport in Pohnpei, a taxi to my hotel was around $15 USD, and it was a smooth ride, but I had to pay cash. It's a good idea to have a good amount of cash on hand for taxis and other small transactions, as ATMs can be unreliable or out of service on the more remote islands.

The Federated States of Micronesia use the US dollar (USD) as their official currency, and cash is the only way to pay for taxis. There are no ride-hailing apps available, and taxi drivers do not accept credit or debit cards. While major hotels and some larger businesses might accept cards, for all ground transport, you must have physical currency. ATMs are available, primarily from banks like the Bank of Guam or the Bank of the Federated States of Micronesia, but they can be few and far between, especially on smaller islands.