Ridesharing service Uber, Inc. has teamed with bitcoin services company Xapo Ltd. to allow Uber users in Argentina to pay for their rides using bitcoin.

The deal is reported to have occurred due to attempts by the Argentinian Government to close Uber down, including banning all credit and debit card operators from processing payments for the company; Uber users in the country have had to pay for their Uber rides in cash up until this point.

Xapo, which offers a debit card that draws funds from a bitcoin wallet, bypasses the ban as the company issues its cards from Hong Kong, not Argentina, and any amount drawn on the card is not processed through local banks, be it that the transaction itself relies on the international Visa network.

“Since last week, all Uber users in Argentina have been able to use their Xapo Bitcoin Debit Cards to pay for their Uber rides,” head of Xapo debit cards Anni Rautio told Brave New Coin. “This is a win for all local Uber users and drivers, and for Uber as a company, as they are able to continue operations in Argentina through Xapo’s Debit Card.”

Fightback

Despite being the target of court orders, Government and even taxi strikes (because nothing says taxis are better by having them all go on strike), Uber is fighting back against attempts to close down its operations in the country, and is even said to be expanding into more cities from its current Argentinean base in Buenos Aires.

Uber is also turning out to be a huge hit in the country, with 550,000 users said to have downloaded the app and some 37,000 drivers working for the service.

For Xapo the deal is a way to boost adoption of their debit card product, let alone that fact that it also will assist in exposing Bitcoin to a large audience as well.

The ability to pay by Xapo debit card only came online July 3, so it’s too early to tell whether it will become a popular payment option, but even if the numbers don’t turn out to be huge, they’re still extra numbers for Xapo as it continues to grow the company.

Image credit: senatormarkwarner/Flickr/CC by 2.0