The on-demand taxi booking service Uber which came into RBI scanner due to its payment mechanism and was given time till November 30th to comply with the Indian laws, has finally got a solution for the same. Uber is now tying up with Paytm to offer the services of a semi-closed wallet.
The wallet will work through the mobile app and will let riders pay for their trips without using cash.
The existing Uber users will require to sign into the Uber app again where they will be prompted to sign into the Paytm wallet as a two-step process.
Uber was facing a tough time in the country after the RBI declared that it is now mandatory for companies to follow a two-step authentication process for credit card transactions. Uber is known for providing ease to its customers while making payments, as users don’t need to make the payment after the ride ends and the fare use to get deducted directly from the credit card and all the transactions use to get executed using an international gateway, thus there was no need for a two-step verification which indeed is mandatory by RBI.
Under the new mechanism, the two-factor authentication will have to be done only at the time of loading or recharging the virtual wallet accounts, and not after each ride and the fare will be auto-debited from the wallets.
“Customers can now pay with multiple systems including debit cards, credit cards and net banking,’ said Vijay Shekhar Sharma, founder and managing director of Paytm.