In a bid to become complaint with local regulations, the global taxi-hailing company Uber is working its way with digital wallets and payment gateways in India.
Last month, the Reserve Bank of India shut a loophole which stated that payments between two Indian residents cannot take place without two-factor authentication. Also, the transaction amount has to be in Indian rupees and not dollars.
The government has given a deadline till 31st October 2014 to Uber to become complaint and stop charging customers automatically by storing their credit card details and overriding two-factor authentication.
Most likely, Paytm is going to help Uber with this process. Paytm has over 12 million mobile wallet users. Uber can also partner with PayU which serves customers like Snapdeal, Jabong etc. RBI allows users to store up to Rs. 50,000 in semi-closed wallets.
Uber now operates in 10 cities, making India its largest market outside the United States.
Source – ET Auto