Is it better to pay taxis in Mexico with cash, or do drivers accept cards or payment apps?
In Tulum I hailed a taxi after dinner and asked if he took card or PayPal. He laughed and said only cash. Another driver told me their machines often don’t work because of bad network coverage. Now I treat taxis like market stalls - cash only, no exceptions. I usually carry a mix of coins and small bills just to make things easy. Digital payments work great with Uber but not with regular cabs.
Used a cab in Guadalajara and was surprised when the driver pulled out a portable card reader. It worked fine with my Visa card but he warned me not every driver has one. I’d say it's rare but not impossible. Most taxis still operate on a cash basis. If you’re staying in major cities and want digital payments, go with app-based rides like Uber or Cabify. Otherwise, carry cash and ask before you get in.
I travelled through Oaxaca, Puebla, and Cancún and didn’t meet a single taxi driver who had a card machine. They all expect cash, and if you try to pay in dollars you’ll get a poor rate. Even in tourist areas, traditional taxis are very much cash-only. Some drivers do accept Mexican apps like Mercado Pago but only locals use those. As a visitor, pesos in small denominations are your safest bet.
In Mexico City I used street taxis a couple of times and none of them accepted cards. The drivers all wanted pesos and didn’t have change for big notes. I asked one about payment apps and he just shook his head. I switched to Uber and DiDi after that and it was way smoother. Unless you're booking through a hotel or an app, always have cash ready for taxis here.