Mexico: Uber Collaborates with MasterCard and BBVA to Launch Debit Card

Uber Technologies has unveiled its plans forlaunching debit card in Mexico; a cash-dependent nation. The company has joined hands with BBVA, Spanish banking group and MasterCard for the launch. The announcement was made public on Tuesday.

The new development was unveiled at an event where a top-level executive for Uber Mexico said that the company supports the expansion of financial services in the nation.

Uber is offering such a card outside America for the first time. The debit card will be available in six Mexican cities: Puebla, Guadalajara, Tijuana, Merida, Mexico City, and Monterrey. Later, the service will be made available to other cities as well.

Uber drivers will not have to pay extra charges to use the debit card.

With majority of the population in Mexico being unbanked, Uber and other companies have been brainstorming new strategies to carry out business in Mexico. Even the Mexican president said in a speech that he doesn’t use debit or credit cards.

It is learnt by the experts that the main cause of a low rate of banking in Mexico is the long queues in banks and lack of rural banking units. 

Since the ride-hailing company is collaborating with BBVA, drivers will be able to register themselves to the Uber app without visiting a bank.

The move by Uber will act as a hook to attract people into banks and other financial institution. Registered driver must have a proper bank account in order to receive their income.