The Reserve Bank of India has extended the deadline by which Uber will have to comply with its two-factor authentication rules, from the 31st of October to the 30th of November, reports BGR India. Uber told the publication that the extended deadline will give it sufficient time to migrate to a new payment mechanism.
Previously, the RBI had mandated that entities that route online billing internationally, for goods and services purchased online using Indian cards, need to include a second factor of authentication, and route transactions through a bank in India. This directive by RBI came after Meru Cabs had asked the regulator to extend its recurring billing guidelines to foreign players as well, thereby creating a level playing field among domestic and International players.
To comply with the RBI guidelines, Uber had reportedly entered into talks with mobile-only marketplace and digital wallet service Paytm and online payment gateway PayU, to integrate a digital wallet with Uber’s payment process last month. As of now, it’s unclear how far these talks have progressed, with the company not commenting on how exactly it plans to comply with RBI’s guidelines.
Cab services launching prepaid wallets: Earlier this week, Bangalore-based online cab booking service TaxiForSure had launched its own in-app prepaid wallet to offer cashless taxi rides. The service allows users to recharge their wallet through credit or debit card or through net banking and then use this to pay for taxi rides. The company did not say who its partnering to offer the service.
Olacabs and Meru Cabs had also launched in-app prepaid wallets earlier this month, with the same features, enabling users to recharge wallets and then using this to pay for taxi rides. As an introductory offer and in a possible bid to encourage more users to use the wallet, Olacabs said that it will offer 100% cash back to users on their first recharge until October 31, 2014, while Meru is offering a 5% cash back on their wallet recharge at the moment. To offer the wallet service, Meru cabs partnered the digital payments solutions provider Citrus Pay, although Olacabs did not disclose any such details.