Uber has tied up with Paytm to provide a mobile wallet solution in order to comply with RBI regulations. Earlier, the RBI had called Uber’s credit card based payment system illegal as it did not follow the two factor authentication system as mandated by the RBI. Also Read - Best online gaming platforms to play multiple games: Paytm First Games, PlayerzPot and moreAlso Read - Internet down: Zomato, Paytm, Disney+ Hotstar, Amazon, Myntra, many other global services suffered massive outage
In the new system users will be able to use their debit or credit cards, net banking or even money stored on Paytm’s wallet. Existing Uber users will be asked to sign in to Paytm in order to make payments with two-factor authorization. In case the user has money stored in their Paytm wallet it will be automatically debited after the ride. Else users will be prompted to make the payment the next time they launch the app. “Paytm is making uber experience for everyone,” Vijay Shekhar Sharma, founder and managing director, Paytm told BGR India. Also Read - Zomato IPO: How to invest via bank, Zerodha, and Paytm Money
Till now, Uber stored the user’s credit card information and charged the amount on the card automatically. It used an international payment gateway, which according to the RBI flouted Indian regulations. This is the first of its kind partnership for Uber anywhere in the world. The RBI had first set October 31 as the deadline for Uber to comply with the law, which was later extended to November 30.