India’s largest digital wallet, Paytm, will face competition from Reliance Jio Infocomm for making payments on ride-hailing platform Uber.
Uber and Reliance Jio have announced the signing of a strategic partnership on 20th February that will allow users of Uber app to pay using Jio Money. Also, Jio Money users would have an option of booking a ride on Uber from within the app.
Digital Payments have become a part of our everyday lives and by integrating Jio Money, Uber riders will be able to use a familiar and consistent payment experience.
The 2 companies are working towards integrating several of their services that could include digital content, entertainment, and in-car internet
For Paytm, this move could hurt the number of transactions it processes. It has found limited takers for its digital payments solutions in the online world.
Paytm has therefore turned towards winning offline merchants, both organized and mom and pop stores. Uber had partnered with Paytm in late 2014 but soon started accepting cash payments.
Uber’s partnership with Jio Money is at the time when it is battling Ola for market leadership. It is looking to target the 100 million users of Reliance Jio, many of whom are 1st-time users.
