As Uber continues to grow and spread across the various continents, they continue to innovate ways to improve their business and make payment for Uber Passengers and to Uber Drivers easy.

The most recent of such improvements is the digital wallet which Uber is rolling out in India. According to news flying around, Uber has been working on the closed wallet feature (since) right after the RBI mandate was given. It became very necessary for Uber to start working with wallet services providers after the Reserve Bank of India issued a mandate which contained the fact that a two-step authentication for credit card payments was necessary for foreign companies – a class under which Uber falls.

The Indian market has proved different from other Uber markets, and Uber’s credit card payment operational dynamics in India is one example of that: This is why Uber’s payment related solutions are customized in that region. This is expected and necessary since India is fast becoming Uber’s largest market, in competition with the company’s home country – U.S. If the service succeeds in India, it will spread to other places – especially other developing markets.

The closed wallet will allow users to make payments for rides; for now only rides hailed directly on Uber. This new plan, if and when it spreads, will mark a significant departure from Uber's worldwide practice of accepting payments on only credit cards and cash (in India and a number of regions). A departure, not because Uber will stop taking card or cash payments, but because it just gets easier and simpler with the digital wallet. In the case of Uber commuters in India, the payment options will increase. Before now, people using Uber in India had the options of paying using credit cards, cash, Paytm and Airtel Money digital wallets.

Sources privy to the said plans told ET that the company will begin by offering a closed wallet that will not require RBI authorization, with commuters being able to upload up to a maximum of Rs 5,000. This is half of what Paytm allows users to upload, but this is Uber’s own wallet and takes out the need for external authorization, so it’s a good choice too. However, you shouldn’t consider this a traditional competitor since Uber plans to continue working with other digital wallets.

It might seem like this doesn’t really change a lot, yet it makes a lot of things better, providing a plus one to the number of available payment options. You would be right to expect that this change would gather positive reaction in the Indian market, since users there are quite familiar with the use of digital wallets.

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-by Ola John