Taxi payments company Cabcharge says improved economic conditions and the growing popularity of “tap-and-go” card technology has contributed to an eight per cent rise in its half year profit.

The company on Tuesday said it made a net profit of $36 million in the six months to December 31, up from $33.3 million in the same period a year earlier.

Revenue from its taxi-related services grew six per cent, due to improved economic and trading conditions, plus higher turnover from the use of bank cards as contactless technology encouraged more people to pay by plastic instead of cash, Cabcharge said.

Revenue from its bus business and UK operations also grew.

But Cabcharge lowered its fully-franked interim dividend to 15 cents, down from 18 cents a year earlier.

The company’s shares were up 25 cents, or 6.2 per cent, at $4.28 at 1219 AEDT.