Uber Launches Mobile Payments through Paytm for India-Based Customers

Uber, a leading taxi-booking app, announced the launch of a new payment method for India-based customers.

The new wallet-based payment system is designed to comply with the country’s new regulations that were set in place by the Reserve Bank of India (RBI).

Individuals who are using Uber’s taxi services are required to pre-pay their rides through a Paytm wallet. The payment platform is essentially connected to a customer’s bank card, allowing individuals to ‘top up’ or add money to their virtual wallet with ease. Instead of deducting payments from a customer’s card, the app takes away from the wallet’s balance.

When asked about the new payment method, an Uber representative said, “Once you link your debit card or bank account via a Paytm wallet to your Uber account, you’ll easily be able to top up your wallet using multiple payment options.”

In most countries that support Uber services, customers are able to directly link their debit or credit card to the app. Furthermore, payments are only initiated after a successful ride, not before. In India, this payment process may not be efficient due to the number of local cards associated with banks overseas.

Because of this, RBI requested for a two-step authentication process that is applicable to all card transactions. Local businesses are required to comply with the new regulation, which started earlier this month.

Uber was quick to rollout the new payment method to cater to the requirements set forth by RBI due to the company’s well-established operations in the country. India is currently Uber’s largest market outside of the United States, serving over 10 cities in the area.

As of now, cash payments are still not supported by the platform, though this may change in the future, as the company aims to introduce cash payments to various markets.