No card? No worries: Uber has a new way to pay, but there's an odd catch

Kiwis now have another way to pay for their Uber rides.

If you've ever found yourself low on money in your bank account but still had a spare $10 in your wallet, you'll be glad to know that cheeky tenner can soon pay for your next ride.

Uber has announced it's rolling out cash as a payment option across New Zealand from late July.

The nationwide launch comes after a trial in New Plymouth earlier this year, where locals who preferred - or needed - to pay with cash could still book a ride from A to B.

How to pay with cash in an Uber

While the app will still be digital-first, Uber says the new payment option has been designed to avoid the usual headaches that can come with handing over cash.

That means you'll still see your fare upfront before confirming your trip, so you'll know exactly how much cash you'll need - no meter ticking up and up while you nervously stare at it from the back seat.

If you realise halfway through your ride that you'd rather pay by card, you can switch your payment method at any point during the journey.

What's the catch?

If you don't have the exact amount, you can still pay most of your fare with cash. Uber will charge the remaining balance through the app, but you'll need to pay it before you can book your next trip.

And if your driver doesn't have the right change, Uber will automatically credit the difference back to your account. The catch is that it will be refunded as Uber Cash, which can only be used for Uber rides or Uber Eats.

Is paying with cash in an Uber safe?

Uber says all of its safety features will remain in place for cash transactions, including GPS trip tracking, audio recording and access to 24/7 customer support. If there's a dispute, you sort it out with the team via the Uber app, no need to take it up on the spot with the driver.

Drivers can also choose whether they want to accept cash trips through an in-app opt-out setting.

Uber Australia and New Zealand Managing Director Emma Foley said it's all about giving people more choice.

"Reliable transport should be accessible to as many people as possible, and choice in how people pay is an important part of that," she said.

"For many Kiwis, cash still plays a practical role in how they budget, pay for everyday essentials or manage day-to-day spending. Introducing cash as a payment method gives riders another way to pay for Uber trips, alongside digital options such as credit and debit cards, and helps reduce barriers to getting where they need to go."

Cash payments on Uber are already available in more than 70 countries. New Zealand is joining the likes of Australia, Japan, France and the United Kingdom.