Wednesday, 1 October 2014

Olacabs, Meru Cabs enable cashless rides with in-app wallets

Olacabs launches in-app wallet


From accepting cash to smooth credit/debit card based payments, the rental taxi service providers have taken the next logical step – mobile wallets. India-based taxi services – Olacabs and Meru Cabs are now promising cashless rides by introducing in-app pre-paid wallet feature through their Android and iOS mobile apps.


100 percent cash back till October 31


On-demand taxi network Olacabs, founded by Bhavish Aggarwal and Ankit Bhati in 2011, aggregates about 25,000 taxis in three categories – Mini, Sedan, and Prime. Ola wallet, its pre-paid in-app wallet, allows customers to load money from INR300 (US$5) to INR5,000 (US$81) using debit card, credit card, or netbanking. That can be used to pay the Olacabs fare.


The company has also introduced a 100 percent cash back offer by adding cash value equal to the amount recharged in the Ola wallet during this Diwali festival season in India. That means, if you recharge the Ola wallet with INR 500 (US$8), then Ola will add another INR 500 (US$8) to that, but only if recharged before October 31.


See: Ola Prime debuts in 6 Indian cities to take on Uber


Besides this, the company will continue accepting cash payment as well. The latest Ola app update has features like time/fare estimator and ride-tracking.


Meru Cabs has also introduced a new in-app prepaid wallet service powered by digital payments solution provider Citrus Pay, MediaNama reported. Meru app users can load cash value in the Citrus powered wallet using debit card, credit card, or netbanking. After a ride, the final fare is automatically deducted from the wallet.


Unlike Ola, Meru owns the taxis under its brand name. Meru Cabs is currently offering five percent cash back to new users loading cash in the Citrus wallet.


Next up: Uber to offer mobile wallet


US-based Uber is also in talks with digital mobile payments solution providers – PayTM and PayUMoney – to power the in-app wallet feature in the Uber app, Economic Times reported.


So far, Uber in India stored the credit card information of its app users, and deducted the fare from the user’s account after the ride. With RBI’s circular demanding two-factor authentication for card-not-present online transactions, Uber has until October to tweak its payment method. That is why it is in talks with payments solution providers.


The prepaid in-app wallets aim to drive the cashless transaction where in the user does not have to use credit/debit cards or cash after the taxi ride. However, there are two drawbacks to this. First, the money in one in-app wallet can only be used to pay for taxi rides of that particular company. You can’t pay for a Meru ride with an Ola wallet. Second, money once loaded in the in-app wallet cannot be withdrawn later. That means you can use it as emergency payment for the taxi but not redeem it as cash even if you need it. Nevertheless, this is another way for taxi companies to ensure their customers stay loyal, and not fickle.


See: Why is Uber sweating in India? The low-down on tricky payment rules


(Top Image: Olacabs Twitter)







Olacabs, Meru Cabs enable cashless rides with in-app wallets

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