Ola has re-branded its credit/postpaid payment service called Ola Credit and will now be called as Ola Money Postpaid. According to the company’s website, customers can avail Ola Credit benefits on Ola Money Postpaid by updating their app. Additionally, if customers don’t see the Postpaid option in the app, the company will alert them as soon as they have an invite.
Ola Credit has been offering a postpaid service for select users, based on their transaction history, where consumers can avail rides but pay up to seven days later. The SoftBank backed company clarified on Twitter that it will remain available to select users only and that currently, Ola Money Postpaid can only be used to pay for cabs rides. Ola further said that the service can be paid for using net banking, debit and credit cards or Ola Money. The seven-day credit cycle will begin from the date of the first credit ride, the company said.
Credit offerings by cab aggregators
According to a report on Entrackr, Ola is reportedly working on launching co-branded credit cards for its premium riders and thus has set up an internal team for launching a credit product. Ola’s arch-rival Uber has been offering co-branded credit card powered by Visa in the US. These co-branded credit cards typically tend to offer cash-backs, discounts and other incentives, especially when customers use them on either of the card’s branded partners.
It has to be noted that earlier this year, Ola and ICICI Bank have signed a Memorandum of Understanding (MoU) to provide digital credit to Ola users. At the time, it was reported that apart from offering credit, the MoU will also result in services like offering co-branded credit cards to customers and providing driver-partners with debit cards.
Ola will hope the move will help in its battle with Uber as the latter continues to invest significantly in India. Early this year, Uber’s COO Barney Harford said that the company will be doubling its investment in India and will infuse in funds of an undisclosed amount to expand its products, partnerships and employee base in the country.