Top News

Taxi-hailing app service Uber to restart credit card payments in India; ties up with Zaakpay

Nine months after Uber stopped accepting credit card payments
due to concerns raised by the Reserve Bank of India, the US-based firm
announced it is restarting credit card payments in India.

Nine months after Uber stopped accepting credit card payments
due to concerns raised by the Reserve Bank of India, the US-based firm
announced it is restarting credit card payments in India.

According to an Economic
Times
report, starting this week, Uber users on Android will be able to pay
by credit card along with the existing digital payment option, Paytm wallet. “The new solution is in
keeping with the RBI’s two-factor guidelines and requires a one-time password
to be keyed in to make the payment,” Uber spokesman Karun Arya was quoted
in the report as saying.

For accepting local card payments, Uber India has tied
up with Zaakpay, a Gurgaon-based digital payment gateway firm which was earlier
working with rival Ola cabs. This will allow Uber 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.

Other cab companies such as Ola and Meru already use Indian
payment gateways such as PayU and CitrusPay to let users pay by credit card or
digital wallets.

In 2014, Indian radio taxi providers, including Meru
Cab, Easy Cabs and Mega Cab, had filed a complaint with the RBI alleging
foreign exchange violations by Uber, which was routing payments by Indian users
to Netherlands-based Uber BV. 

After RBI’s
concerns
over violation of India’s forex laws, Uber India changed its
business model and tied up with Noida-based Paytm to let users pay via a
digital wallet.

The move
to restart credit card payments comes after users complained about the hassle
to load a Paytm wallet repeatedly in order to ride an Uber cab in India, thus
hampering a seamless payments experience that the company offers in other
markets. 

Uber is
also testing a cash-based
payments model in Hyderabad
, to compete with larger rival Ola which accepts
cash for rides in addition to digital payments. 

In other news, recently while questioning the ban on certain app-based
taxi services, the Delhi High Court set aside an order of the city
government, by which Uber’s application for licence to ply in the national
capital was rejected, and asked the transport department to impose conditions
on the company to operate.

The court told
the Transport Department of Delhi government to impose any condition on Uber,
in accordance with the law if it was inclined to grant licence to the company
and told the taxi-hailing app service that it will have to comply with the
conditions.

Show More

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Close