Uber today announced a partnership with AliPay -Alibaba’s online payment solution in China – to enable users to use AliPay’s mobile wallet and pay in Chinese Renminbi (RMB) while travelling internationally.
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That eliminates the need for dual currency credit cards or currency conversions.
Uber riders have been able to use Alipay to pay for transportation in mainland China since 2014. Through this partnership, Chinese users, while traveling to the USA, can hail Lyft ride through the Didi app.
Uber is also strengthening its relationship with India’s Paytm, a digital wallet provider in which Alipay’s parent company Ant Financial holds a stake.
The catch here was that if you’re an Indian Uber user, your Paytm wallet doesn’t work outside the country, meaning you can’t pay your fare.
The partnership with Alipay and Paytm will enable Uber riders to pay for their global rides directly in Chinese Renminbi (RMB) for Chinese and Indian Rupee (INR) for Indians using their connected Alipay and Paytm accounts respectively, eliminating the need for dual currency credit cards or currency conversion.
Alipay has been sharing its technology with Paytm since the stake acquisition took place in February past year, and will expand a similar strategy and product integration between Alipay, Uber and Paytm. “The beauty of this integration is that users will be able to easily use home payment systems globally”, Paytm founder Vijay Shekhar Sharma added. Since most Chinese users prefer Alipay over credit cards, the partnership led to an explosive growth of Uber in China. The Chinese software giant, which has invested heavily in Didi, has previously blocked Uber from its WeChat messaging app, which has around 700 million users and connects directly to Didi Kuaidi. Now with Alipay, the Chinese travelers can easily book cabs in 68 nations, where Uber is operating, through Alipay app.
Soon, 126 million Paytm users will be able to use their mobile wallet to make payments at several worldwide supermarket chains, hotels and for cab travel in more than 16 countries.
The partnership gives Uber an advantage over its rivals, such as Didi Kuaidi, Lyft, Ola, and Grab.
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Alipay is present in 15 countries and collectively Alipay and Paytm see a base of 600 million users as an addressable opportunity.
