Public transport offering company Uber has partnered with Mexico’s first online bank Bankaool and electronic payment service provider MasterCard to launch Uber Bankaool Debit Card. The service has been available from October 2016 in Mexico. This service will allow consumers to pay for rides using online banking and mobile banking app connected to Bankaool account. This card can also be used at any merchant location that accepts MasterCard which includes restaurants, movie theatres, e-commerce platforms and m-commerce apps in Mexico and worldwide. It allows two cash withdrawals at ATMs in a month and suitable savings and investment products are offered through Bankaool account.
The service has introduced certain benefits to draw in consumers. First Uber trip for an amount up to MXN$100 is free of first time app users along with unlimited interbank fund transfers (SPEI) at no additional cost. Currently the debit card is available through Bankaool website for an initial deposit of MXN$200 and monthly deposit limit of MXN$15,000. Uber plans to make this debit card available through convenient stores in coming months.
There are very few players in this segment until now in Mexico. Currently mobile network provider Telefonica has a partnership with MarsterCard that facilitates mobile financial services to Telefonica customers. Mexican mobile wallet market still remains underserved. As a result, growth potential over the medium to long term remains strong. In this environment, Uber Bankaool debit card has introduced an innovative service line which is expected to attract unbanked and underbanked population of the country. Bankaool is likely to get a wider reach in the market while gaining new customers in the process. Uber on other hand will benefit from business expansion in a new segment that has not been utilized before. Uber has already been taking initiatives of venturing into financial service segment. It holds multiple deals through car financing and had collaborated with online wealth manager Betterment earlier this year to assist investment and savings for Uber drivers.
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