In the wake of RBI putting the stopper on international payment gateways, Uber is now looking at alternatives to comply with local regulations. The online cab service provider is reportedly in talks with Paytm and PayU to integrate a digital wallet with Uber s payment process, according to Economic Times. Also Read - WhatsApp not authorized to go live with UPI full scale operations, RBI tells Supreme CourtAlso Read - Uber cab service resumed in 31 cities in India with new Lockdown 4.0 guidelines
Headquartered in San Francisco, Uber is essentially a high-end cab service provider with the help of an app or a website. The process of payment for the service is taken care of through pre-stored credit card details eliminating the need to keep lose change to pay the driver and saving precious cash exchange time. Also Read - Uber launches 'Uber Connect' package delivery service to rival Dunzo and Swiggy Genie
Reserve Bank of India (RBI) released an order in August which effectively would require Uber to shut down in India by October 31, unless, it tweaks its business model. RBI stated that Uber and other companies that offer app-based purchases cannot allow customers to pay with their credit cards without a two-step authentication process. Customers, earlier, simply had to enter their credit card details at the time of signing up with Uber. Every ride was automatically charged to the card without any further verification.
With RBI putting the stopper to seamless online payments, Uber has to look at alternatives. Installing credit card machines into the cab goes against the USP as they look to save the time of the consumer by not paying the driver. Therefore, the only option for them is to integrate digital wallets.
A person with direct knowledge of the discussions told Economic Times that Uber will most likely integrate with Paytm and payment gateway PayU.
Even though digital wallets is the viable option for Uber right now, it will still lose its seamless one-click payment offering. “Ecommerce companies, unlike Uber, first take the payment and then deliver the service or goods. A passenger is not going to wait for more than two minutes to authenticate payment and would rather pay in cash and move on,” Alok Mehta, director at payment processing firm Atom Technologies told ET.
It is interesting to note here that the RBI reform came after Indian competitors like Meru Cab, Easy Cabs and Mega Cab, filed a complaint with the RBI alleging foreign exchange violations Uber.