US taxi-hailing app Uber Technologies on Sunday said it will accept payments through credit cards from its riders in India.
The service will start from Monday and customer could now pay for all Uber rides using international and Indian credit cards, the company said.
Following RBI regulations, there shall be two factor authentication flow built in to the app, and customers would have to enter online banking pin or a one-time password before company could charge the fare to customer's card, Uber said in a statement.
"While we now accept credit cards. We continue to accept Paytm Wallet as a mode of payment," the company said.
Earlier, the company had run into regulatory hurdles with Reserve Bank raising objections to its payment system as it had not included the two-step authentication process. Uber was then asked to comply with the regulatory norms.
Following the RBI order, Uber changed its payment method and partnered with an India-based virtual wallet provider, Paytm.
The company said it will accept all major credit cards issued by Mastercard, Visa and American Express. In its statement, it assured users their payment information will be kept 'secure and encrypted', and adds users can associate more than one card.