Online taxi hailing application Uber is resuming payments via credit cards in India after nine months. Uber had stopped payments via credit cards after the Reserve Bank of India (RBI) had raised concerns over two factor authentication and violation of foreign exchange laws in India.
The feature is currently available for Android users and will be rolled out to iOS users in the coming weeks. “You can now pay for all your Uber rides using International and Indian Credit Cards. Adhering to RBI regulations, there shall be 2 Factor Authentication flow built in to the app and we’ll need you to enter your Online Banking Pin or One-Time Password before we can charge the fare to your card,” Uber said in a statement.
Uber also says that it allows users to scan their credit cards as an option to enter their card details.
The Economic Times reports that Uber has tied up with Delhi-based Zaakpay, a digital payments gateway, which will allow users across 18 cities in the country to enter a CVV (card verification value) and a one-time password received on their mobile phone, to pay for the cab ride. Uber says that users can still use the Paytm* wallet as a mode of payments for rides. However, the company did not say whether users could use debit cards for the transactions. We have written to Uber about the same, and we will update you once we hear from them.
Earlier in November 2014, Uber had tied up with Paytm to enable users make use of Paytm’s prepaid wallet to pay for their tax rides. This tie-up was necessitated after RBI issued a directive that Card Not Present (CNP) transactions for purchases of goods and services in India had to be processed through Indian banks and payments needed to be made in Rupees in August this year.
Uber used to route its payments to its Netherlands-based subsidiary, Uber BV. MediaNama has also written to Uber regarding where the payments are being settled now in India and we will update you as we hear from them again.
Uber piloting cash payments in India
In May, Uber said it was testing out cash payments in Hyderabad. Globally, Uber does not accept cash payments in any other city and the company hopes that it can better understand customer behaviour and usage patterns so that it can deliver more efficient payment models in India, its second largest market following the United States.
Earlier in April, Uber introduced cash-based auto services in Delhi called uberAUTO. Hired autos will ply at government approved metered fare and will have to be paid for in cash at the end of the ride. To use the service, users need to login on the platform and book an auto like a regular taxi. No booking charges are levied by Uber and users don’t need to have any balance in their Patym wallets either.
*Disclosure: Paytm parent One97 Communications is an advertiser with MediaNama