Online and Mobile Payment wallets are slowly becoming an important payment channel for offline service providers to collect payments easily from consumers through mobile phones.
Uber, one of the fastest growing cab aggregator and discovery mobile app was in soup earlier in regards to violating FEMA and RBI norms in terms of collecting payments. Competitors of Uber had alleged that they were flouting the norms in regards to Credit card transactions in India.
This was also followed by Service tax dispute, where tax officials said Uber had to pay service tax on payment collected on cab rentals. Uber was of the opinion that Cab drivers should pay it.
While the service tax issue is still wide open, Uber has now resolved the primary issue of collecting payments from consumers. They have tied up with India’s leading online and mobile wallet provider Paytm for collecting payment from cab riders.
Going forward, Uber consumers can make payments easily through Paytm wallet. Previously, consumers could only use their credit cards to make payments (not even debit cards). However, now with availability of Paytm wallet, the payment could be done through any of payment channels including netbanking, debit cards, cash cards and others.
Bagging user payments is a major win for Paytm wallet, and should definitely increase Paytm wallet usage to a very large extent. We are not sure if the deal is exclusive, but in our view, Uber would be looking at introducing other wallets and channels as well.
On the other hand, with this move, many more consumers will now get on to the Uber bandwagon, as creating a Paytm wallet is extremely easy, and making payments even more easier!
How does the Uber Paytm Wallet integration work ?
Once you open the Uber App, first asks you to add a payment source. Earlier, you only had an option to add a credit card, however, the new screen will also have an option to add Paytm as a payment source.
Once you click “Add a prepaid wallet”, the app will automatically check if your number is connected with any Paytm wallet account.
If you do not have an account with Paytm wallet, you will need to create one. If you have an account, you will be sent a verification code that you will need to enter into the prompt.
Once verification is done, you are all set!
You will need to add money to the account with a minimum recharge value of Rs. 100. That’s it. Everything else on the Uber app remains exactly the same. You’ll be emailed a receipt at the end of your trip with a detailed fare breakdown and the trip route taken. Your fare will be automatically debited from your Paytm wallet.