Uber wants to try letting more people in developed countries pay by cash

SINGAPORE -- Uber's been experimenting with cash payments in emerging markets, where credit card penetration isn't high, and now it's considering letting riders in developed markets pay with cash, too.

The company announced during a press briefing on Wednesday morning, that it's opening cash payments to Singapore -- the first developed market in which it's doing this.

It'll be an "experiment" involving an undisclosed portion of the user base. "Whatever we learn here you could see later in cities like New York, London," said Warren Tseng, Uber's general manager for Singapore.

"Whatever we learn here you could see later in cities like New York, London."

This move is unusual, given that on average, most individuals in Singapore hold about two cards in their wallets. Uber has been trialing cash payments in 27 other cities -- most in Asia -- starting with Hyderabad, India, in May 2015.

In places like Indonesia and Vietnam where credit card penetration is in the single digit percentage range, cash payments make sense for Uber to reach the broader market.

"We know people already using credit cards are not likely to convert backwards to cash. This move (in Singapore) is about reaching new users who might be afraid of credit card fraud," said Tseng.

Uber is also keen to touch segments of the populace like students who may not have credit cards yet, or senior citizens who feel nervous about putting their credit card information into the app, he added.

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But opening cash payments seems to run counter to one of Uber's main sales pitches -- creating a safer environment for drivers who may feel vulnerable travelling with cash on them.

Tseng said drivers should feel safer because information about the ride and passenger is all logged with Uber's app.

Uber's Singapore launch follows cash payments opening in three Malaysian cities -- Johor Bahru, Ipoh and Penang, and earlier in the week in Cebu, in the Philippines.

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Uber's main rival in Southeast Asia, Grab, also offers cash payment, which it started allowing around the middle of last year in countries like Singapore, Malaysia and the Philippines.

Uber's cash trial is open in other cities like Manila in the Philippines; Bali, Bandung and Surabaya in Indonesia; Bangkok, Thailand; Ho Chi Minh, Vietnam; and outside of Asia in Lima, Peru; Cairo, Egypt; Jeddah and Riyadh in Saudi Arabia.

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