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"Uber for example accepts cash in India such is the nature of the economy there."
Uh oh let's not jump to conclusions about economy of nations based on what one company does or does not. India has >600M payment cards. Uber's customer base is 10M in India. So there are 60 cards for every Uber customer in India. Uber's acceptance of cash
has nothing to do with economy.
When Uber entered India, it didn't accept cash. Its target audience had cards and, like their brethren elsewhere in the world, liked the frictionless payment experience whereby the card account was debited automatically, with the rider having to do nothing
at the end of the ride. However, "invisible payment" of this nature violated the Indian regulator's two factor authentication mandate for card payments. Uber was told to change its card acceptance procedure to comply with 2FA. Since 2FA causes friction, Uber
decided to stop accepting cards altogether and started accepting cash in India. Uber went back to the drawing board and found a way to accept cards that complied with 2FA, still avoided the traditional 2FA friction. After its relaunch, card payments on Uber
India work as follows: Riders still walk out at the end of the ride without doing anything. But they must make the payment via 2FA - or, if that fails, by cash or linked mobile wallet - before they book their next ride.
In short, Uber gives credit until the next ride. I doubt if Uber takes this kind of credit risk anywhere else in the world. That, to me, says something about the Indian economy.
This post is from a series of posts in the group:
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