Uber to launch Indian digital payment wallet

Uber has announced plans to launch its own digital payment wallet in India, which will extend payment options to Indian riders who already have a variety of ways to pay: by cards, cash (which is an option only available in India), or via the Paytm or Airtel Money digital wallets.

BENGALURU: Ride-hailing app Uber , the world’s most-valuable startup, plans to launch its own digital wallet in India, the first market where the San Francisco-based company is making such a move.The closed wallet—to allow payments only for rides hailed on Uber—will mark a departure from Uber’s worldwide practice of accepting payments on credit cards. This will extend options available to Indian commuters, who currently can pay by card, with cash or through Paytm and Airtel Money digital wallets."Uber has been working on the closed wallet feature (since) right after the RBI mandate was given," said one source directly familiar with the development. "It will still continue working with other (digital) wallets."Uber had to start working with wallet services providers after the Reserve Bank of India in August 2014 ruled that a two-step authentication for credit card payments was necessary for foreign companies like Uber as well.A representative for Uber said the company had "no comments" to offer in response to ET’s queries on its plans to launch its own digital wallet.People privy to Uber’s plans told ET that the company will begin by offering a closed wallet that will not require RBI authorisation, with commuters being able to upload up to a maximum of Rs 5,000.Paytm Wallet allows users to upload up to Rs 10,000 a month (the wallet can be upgraded on providing additional documents). Some digital wallets can be used to make both online and offline payments as well as to withdraw cash.Digital wallets are proving to be a critical feature for consumer internet companies seeking to wean customers away from cash payments.