India’s regulations require every transaction made with an Indian credit card, no matter how small the amount, to include two-factor authentication (2FA). While this requirement is intended to provide more security for consumers, it is an antiquated solution that is cumbersome for consumers and stifling for businesses across India.
Ahead of the Reserve Bank of India’s (“RBI”) compliance deadline we have seen a slow conversion of riders from credit cards to a 2FA compliant wallet, which indicates their trust in Uber’s payment system and a preference for more convenient yet secure online/mobile payments. Despite consumer preference and in the face of rapidly changing business expectations, India’s one-of-a-kind 2FA requirement persists, causing a major challenge for businesses trying to offer Indian consumers a better purchasing experience.
Today, Uber has complied with the RBI August 22, 2014 circular requiring every credit card transaction made with an Indian credit card to include two-factor authentication. While we believe this requirement is unnecessary and burdensome, we have engaged in constructive discussions with the RBI and are committed to working with the Indian government to advance regulations that support innovation and job creation.
In the meantime, we would welcome an additional 45-day extension from the RBI that would give the majority of our existing riders sufficient time to transition over to a new 2FA-compliant payment system. This additional grace period not only prevents consumers from being disadvantaged but it also protects partner-drivers who rely on Uber’s riders as their sole source of income.
Prime Minister Modi’s government is dedicated to promoting a business friendly environment and we welcome his leadership and commitment to moving the nation forward. We are eager to take part in this important conversation and assist in creating Indian government policies that encourage economic growth, spur foreign direct investment and facilitate job creation in one of the fastest growing countries in the world.