PhonePe ATM: Now Withdraw Money from Shops
At a time when the number of ATMs in the country has fallen in the past two years, as per RBI, this facility can help extend ATM access to more customers
Digital services platform PhonePe has launched first of its kind digital ATM in India. Any user in need of cash can open the PhonePe app, locate a nearby store offering this facility through the store tab and collect cash from the merchant by sending him the amount via Unified Payment Interface (UPI).
“The PhonePe ATM allows customers to withdraw cash without any hassle through our trusted merchant partners,” said Vivek Lohcheb, head-offline business development, PhonePe.
Currently, a pilot has been launched in Delhi-NCR with over 75,000 merchants. Any merchant can sign up for the service with PhonePe’s business app. The company aspires to enable neighborhood stores to act as ATMs for its users, while at the same time helping merchant partners to get more footfalls in their stores.
“The feature also helps merchants avoid the hassle of storing cash and making multiple trips to the bank branch to deposit their extra cash,” Lohcheb added.
At a time when the number of ATMs in the country has fallen in the past two years, as per the Reserve Bank of India, this facility can help extend access to easy cash withdrawal to more customers. However, there’s a daily withdrawal limit of INR 1,000 for each customers; so the facility will actually come in handy during emergencies.
Of course, the customer can frequently visit merchants to fulfill regular cash needs. There are no charges for customers and merchants to avail this facility and, unlike ATMs, no limit on free withdrawals. Merchants can switch off the service whenever they want to stop cash outflow.
In its bid to build an all-round financial marketplace, the Flipkart-backed company also entered into insurance business on Thursday with the launch of international travel insurance in partnership with general insurer Bajaj Allianz. Earlier this month, the company had launched liquid fund investment option on its platform in partnership with Aditya Birla Mutual Fund and in September, it launched IPO bidding via UPI.