uber launches wallet-based payment system in india to comply with new regulations

uber has introduced a wallet-style payment system in india in response to recent regulations that require all online transactions to pass through domestic paymentsystems.the new payment method nowallows customers to essentially paywith their debit card or net banking account, in addition to a credit card as before. cash payments are still not supported. customers charge a pre-paid wallet, which is then used to pay for uber rides. payments are thus deducted from the wallet, rather than directly from a debit or credit card.
an uber spokesperson confirmed to techcrunch that in the event that a customer has insufficient funds to pay their tab, the account goes into a negative balance and subsequentlyprompts them totop up and return their wallet to credit after theride.the new system which is powered by india-based payment platform paytm is effective immediately in the country, although international credit cards can still be used.
on @uber it is now @paytm wallet or international card. big #win for @paytm pic.twitter.com/klaal7t1cl
jatin sapra (@jatinsapra) november 13, 2014
uber’s blog post announcing the wallet system doesn’t make mention of thereserve bank of india (rbi) regulations that forced this change, instead the company saidthe pay-as-you-go system will be easier for its customers:convenient payment options are important to people everywhere. we hope these new choices will enable the lone woman traveler to get around safely, or the college student on a budget to get around cheaper with the fare split option.either way, the change should now allow uber to operate in india in accordance with local legislation and rules. those familiar with the company will know that it often rallies against the system, but in this case it had little choice but to adhere to the rules required in india. that said, when it comes to payments, uber execs in asia have previously told me that they are willing to be flexible, including potentially introducing cash payments in some markets.
uber recently launched its vehicle financing program in india, in what was the first rollout in asia, as it looks to compete on a more equal footing with local services like ola, which recently raised $210 million, for the attention of drivers. uber is currently serving 10 cities in india, that’s its second largest market behind only the u.s..