Uber picks Hyderabad to begin testing cash payment

India is set to be the first country across the globe where Uber will begin testing cash payment system as the firm announced its decision to roll out the initiative on an experimental basis in the Indian city of Hyderabad.

A blog post published by the company said that the decision was aimed at testing the payment system in a part of the world where many consumers prefer to pay for services in cash, reported The Verge.

Siddharth Shanker, GM of Uber Hyderabad, said in an email statement that cash played "a big role" for Indian consumers and as a data-driven company that has witnessed strong growth in India, Uber thought time was ripe to "explore the extent of this predisposition."

The experiment marked a significant shift for the firm, which rose to prominence largely on the basis of its seamless, interaction-free credit card payment system.

Also Read: Now pay with cash when you take an Uber in India

The new system will be rolled out in Hyderabad next week and will only be valid for rides within the city.

Users will be able to choose the option of cash payment before requesting an Uber ride and will not be required to have a minimum balance in their Paytm wallets for availing the option. However, they will be required to have a credit card or digital wallet account on file. The firm has also promised "no haggling" with drivers.