Payments Innovation

Uber Plans Expansion Into Financial Services

Uber Uses FinTech To Expand Beyond Ride-Hailing

Uber is expanding its services and moving toward providing financial products, according to a report by CNBC.

The company has reportedly been hiring numerous product managers and engineers. Its new FinTech team could ultimately have more than 100 workers. Uber is taking advantage of New York’s talent pool in the financial department, which has more depth in the San Francisco sector.

The company’s push into FinTech will help broaden its lead over rival service Lyft, and its offerings will look to help increase customer engagement and loyalty.

Uber has about 93 million active users around the world, and the majority use Uber Cash or a credit card to pay for rides or food. Uber Cash provides discounts when users fund its electronic wallet.

The major products being developed include “payment experiences” that aim to help riders and Uber Eats users to save money or to help drivers manage their own money, according to a posting for a job. This would line up with Uber’s existing products like Uber Cash, Uber Rewards or its credit card. Uber also lets drivers get paid daily instead of weekly.

A more distant possibility could be an Uber bank account, which would help facilitate payments and save the company some capital by relying on banks for contractors’ payments. However, this would potentially be years away.

If Uber did provide a bank account, it would likely link up with an existing FDIC-insured bank instead of acquiring its own charter. Many FinTech outfits use a small group of institutions like Celtic Bank or Cross River for banking products.

Currently, Uber is also looking to expand its headquarters in New York and find a larger space, potentially as large as 300,000 square feet.

——————————–

Latest Insights: 

The Payments 2022 Study: Building A High-Performance Payments Team For Fraud Detection, a PYMNTS collaboration with Stripe, examines how digital platforms of all sectors and sizes plan to develop their anti-fraud teams as part of their their broader growth and development strategies. Drawing from an extensive survey from approximately 250 payments heads at digital platforms in the U.S. and abroad, our study analyzes how poor anti-fraud capabilities can harm platforms’ long-term growth strategies, and how they can build high-performing teams to tackle these challenges.

TRENDING RIGHT NOW

To Top