Uber to stop accepting credit, debit cards from today

Users will have to use the prepaid wallet Paytm to book rides

Indian users won't be able to use a debit or credit card anymore to book a ride from Uber. 

"Starting today, December 1st, you will no longer be able to request a ride using your credit card or debit card directly through the app. For those holding an Indian credit card, the Paytm wallet will be the only payment method available," Uber said in a statement early Monday.

The move follows problems Uber faced with the 'two-factor authentication' process mandated by Indian banking regulator Reserve Bank of India (RBI). 

 

As a safety measure, all credit and debit card transactions must undergo a two-step process for honouring payments. Typically, a user swipes or enters the credit/debit card information in the first step and then has to enter a password in the second step. 

 

Uber followed only one-step authentication, which fell foul of RBI rules. 

 

Paytm Wallet is an India-based prepaid payment service that is compliant with the central bank's regulations.