Uber to resume credit card payments on app1 min read . Updated: 13 Jul 2015, 12:34 AM IST
Move comes eight months after the firm tied up with Paytm to comply with two-factor authentication mandated by RBI for payment through credit cards
Taxi-hailing service Uber will resume credit card payments on its app in India from Monday, the company said in a statement on Sunday. The move comes eight months after the San Francisco-based company tied up with Paytm to comply with two-factor authentication mandated by the Reserve Bank of India for payment through credit cards.
Earlier, Uber used to store a passenger’s credit card details, and money used to be automatically deducted from the account after completion of a ride.
Uber Technologies Inc., valued at $50 billion in May, was forced to stop such payments after the central bank last year mandated that all electronic transactions that do not involve swiping of a card should have a second-factor authentication from 31 October.
Consequently, Uber tied up with Paytm, a mobile recharge and commerce platform, which also provides wallet services, to facilitate payment.
“You can now pay for all your Uber rides using international and Indian credit cards. Adhering to the RBI regulations, there shall be two-factor authentication flow built into the app and, we will need you to enter your online banking pin or one-time password before we can charge the fare to your card," the company statement said.
Uber has tweaked its business model more than once in its bid capture a bigger share of the Indian market.
For instance, Uber has followed the footsteps of Ola to introduce autorickshaw booking in Delhi in April. In May, the company started accepting cash payment in Hyderabad. Besides, it committed an investment of $50 million in Hyderabad over the next five years as it plans to set up a support facility in the city and create hundreds of new jobs. Once the facility is operational, India will become Uber’s second largest employee base after the US.
India is already the second biggest market for Uber outside the US. The company offers its services in 18 Indian cities.
Ola has been on a capital-raising spree to fund its expansion. It has raised more than ₹ 3,700 crore since October, including ₹ 2,500 crore in April from a clutch of investors, including Japan’s SoftBank Group Corp., Russian venture capital firm DST Global, Singapore’s sovereign wealth fund GIC and Falcon Edge Capital.