Paytm to go global with Uber tie-up

Taxi-hailing app Uber said on Tuesday it has tied up with online payments major Alipay for a global partnership that would enable Chinese commuters to book and pay for cab rides through each other's app across 400 cities where Uber operates. A similar product integration is in the works with the Alipay-backed Indian digital payments platform Paytm to be launched in the coming months, which will let Indian travellers take an Uber ride and pay in Indian currency, executives from the three companies said.

Interestingly, Didi Kuaidi - which competes with Uber in China - has Alibaba, Alipay's parent company, as an investor. Last year, Didi, India's Ola, Malaysia's GrabTaxi and San Francisco-based Lyft came together to form a global alliance in a bid to ward off arch rival Uber. Didi is an investor in Ola and Lyft.

The development also marks Uber's keen interest to tap the two huge markets in Asia - India and China. In both the countries, the world's most valuable privately-held venture is facing cut-throat competition from domestic rivals Ola (India) and Didi (China). "Alipay's collaboration with Uber reflects a step forward for Ant Financial's global strategy, and the collaboration also extends to Alipay's strategic global partners like Paytm in India. The partnership aims to bring better experiences for our users globally," said Eric Jing, president of Ant Financial. Alipay will get a percentage of each transaction it processes for Uber.

Vijay Shekhar Sharma, founder and CEO of Paytm, said that through Alipay's technology, the Indian payments company was increasing its merchant base. "Uber being one of our first and most important merchants, this partnership across 400 cities is a major feat. For Indian users, this will make the process of travelling on international trips very smooth."

Earlier this year, mainland China Uber users travelling to Hong Kong, Taiwan and Macau were able to pay through the Alipay app. But then, these riders had to connect a dual-currency credit card to their accounts while travelling internationally and were billed in US dollars for their rides. Eric Alexander, head of business at Uber Asia-Pacific, said, "Working with Alipay enables us to bring this top-notch experience to the ever-growing number of Chinese travellers who choose to use Uber.