Why on-demand transportation companies like Uber and Lyft are embracing financial services

In Mexico, where the majority of transactions are still cash, Uber is now offering its drivers a debit card and other financial services, including loans. Drivers’ payments will be credited to those debit cards, and the money can then be withdrawn at ATMs, or spent anywhere that accepts Mastercard. Drivers can also apply for loans, and receive discounts at certain merchants when using the card, issued in a partnership with Spanish banking giant BBVA.

“The goal is to make drivers’ everyday spending easier, and continue doing more for them,” a spokesman for Uber said. Last year Uber launched a debit card in the United States through Visa and GoBank. Lyft also announced Lyft Direct, a bank account and debit card available to its drivers.