Just weeks after the Reserve Bank of India shut a loophole by clarifying that online payments taking place between two Indian 'residents' cannot bypass two-factor authentication and that all transactions must be carried out in rupees and not dollars, Uber - the appthat lets you book a cab with the tap of a button- is in talks with firms providing digital wallets and payment gateways in India in order to become compliant with Indian norms.
Uber, a global taxi hailing service which has completed a year in India now, connects commuters with nearby pre-registered cab drivers through a mobile application. However, you can never pay by cash for the service. Payments can only be made through the credit card. You have to use your credit card to register and create an Uber account through your smartphone.And as you get charged on your credit card, the money goes to a Holland-based Uber account near Amsterdam, from where it is further transferred to a US Wells Fargo account.
During this process, the payment is made without two-factor authentication which requires the card holder to give details etched on the credit card surface, and then enter the one-time pin exclusively issued to the customer on his mobile phone. Uber by-passes this stage as it uses an international payment gateway.
It is this policy of remitting dollars out of India that RBI has raised objections to. In order to continue operations in India Uber will have to tie up with Indian payment gateways to comply with RBI directives.
According to a report in The Economic Times, Uber will most likely partner with payment gateway PayU, owned by South African internet giant Naspers.
Founded in 1915, Naspers is a multinational media and internet group with operations in over 133 countries. Its main operations are in e-commerce, pay-television & related technologies and print media.
PayU has a presence in 16 countries and entered India in October 2011. Since then it has captured a significant market share. In India it has marquee clients like BigBasket, Jabong, rechargeitnow, travelyaari and ferns n petals.
Uber has time till October 31 to become compliant with RBI's regulations but in order to do so it may just lose its biggest USP - a hassle-free payment for cab journeys.
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Updated Date: Sep 08, 2014 10:43:58 IST