No more credit card payments: Uber officially switches to pre-paid wallet

After incentives like discounts and free rides for customers to switch to its new two-step payment mechanism, taxi service provider Uber formally switched over to a pre-paidwallet system from Monday, but ensured everyone knew that they weren’t too happy about it.

Users of the app received mails this morning saying that they would have to use a pre-paid wallet system to pay for journeys and the option of using stored credit or debit cards directly for payments was no longer available.

Competitors like Ola Cabs TaxiforSure and Meru already use similar wallet-based payment systems presently and had accused Uber of circumventing the Indian central banks rules on credit card payments.

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In its mail, the service assured users thatcredit and debit card details stored with the app would remain a valid form of payment for taxis outside India and also directed them on how they could delete the details of stored card details.

However, in a blog post the service made it clear that it wasn’t too happy about switching to the new form of payment.

The service said that the two-factor authentication presently required for payments, while ensuring security, was an “antiquated solutionthat is cumbersome for consumers and stifling for businesses across India.”

The company said that the slow pace of its customers switching to the pre-paid wallet system so far showed that they preferred the original mode of payment. It said it had engaged with the RBI for constructive negotiations on the matter and would follow the letter of the law.

“…we would welcome an additional 45-day extension from the RBI that would give the majority of our existing riders sufficient time to transition over to a new 2FA-compliant payment system. This additional grace period not only prevents consumers from being disadvantaged but it also protects partner-drivers who rely on Uber’s riders as their sole source of income,” the company said in its post.

The company said that the new Modi government was dedicated to promoting a business friendly environment and it welcomed his “leadership and commitment to moving the nation forward”, saying that they were also keen to take part in creating policies that spurred economic growth and job creation.