Uber, the worldwide taxi aggregator service provider was banned from accepting credit card payments in India. The reason, the system did not meet Reserve Bank of India’s two step verification (one is credit card details with CVV, and the second step is entering OTP or a set six digit code).
The two step verification system is mandatory for all transactions being made in India via credit cards. As Uber’s app did not use this system, they were banned from accepting credit card payments from Indian consumers as Indian money was getting routed through gateways abroad.
This resulted in Uber partnering with Paytm wallet in India. But, many complained as the credit card system was much simpler. This has resulted in Uber partnering with Zaakpay – a Gurgaon-based digital payment gateway firm.
Using the system provided by Zaakpay, Uber users in India will have to enter card CVV and one time password. Thus allowing then to make payments through their credit cards. This facility is in keeping with RBI two factor guidelines and is being introduced following several complaints from users about loading Paytm wallet to avail of an Uber ride.
Zaakpay was earlier in alliance with Ola Cabs, Uber’s arch rival and is now offering services to Uber India whereby customers will receive their one time password on their smartphones, allowing them to make payments for the ride.
Uber recently announced to invest $50 million in setting up a facility in Hyderabad. This will provide employment to thousands. Apart from this, Uber commits to creating thousands of jobs for women drivers in India.
The liaison between Uber and Zaakpay will be extended to Uber users across 18 cities in India allowing them to use plastic money to pay for their cab ride in much the same way as Ola and Meru already allow users to pay by credit card or digital wallets like PayU and CitrusPay.