The Australian Taxi Drivers Association is developing a mobile payment app that will allow customers to book taxis and make payments that include tips.

The application was put into development as a result of mounting frustration with taxi hailing apps that typically don’t allow customers to tip taxi drivers, bringing driver revenue down by 5%.

The app will introduce a step that prompts customers to tip 5%, 10% or 15%.

"The person behind the wheel probably knows best," said Association president Michael Jools and commented that existing taxi network operator’s applications don’t meet taxi driver needs in identifying areas with high customer demand.

The Australian Taxi Drivers Association’s app aims to improve driver efficiency by broadcasting all available jobs to all drivers, so "all drivers know what’s happening in advance".

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According to Jools, app developers are working out how best to display tips so corporate passengers can claim for expenses.

It is hoped that the application will be launched in July 2014.