As digital payment platforms thrive, Walmart-owned PhonePe has now launched its own Automated Teller Machine (ATM), a first of its kind service in India.
The service launched on a pilot basis in Delhi NCR will enable people to get cash from merchant partners through transactions with their mobile devices. The company said that the service will enable neighbourhood stores to act as ATMs for PhonePe users.
“The PhonePe ATM allows customers to withdraw cash without any hassle through our trusted merchant partners. It also helps merchants avoid the hassle of storing cash and making multiple trips to the bank branch to deposit their extra cash,” said Vivek Lohcheb, head of offline business development, PhonePe. He added, “Additionally, this new launch will also drive more footfalls for our merchant partners. PhonePe ATMs are a great way to start getting consumers and merchants to start adopting UPI (unified payments interface) payments in large numbers.”
With this new launch, PhonePe, which competes with Paytm, Amazon Pay and Google Pay, said that it is promoting a service that solves a real consumer problem. Now, a customer in need of cash can simply open the PhonePe app, go to the store tab and click on the PhonePe ATM icon to locate nearby shops offering this facility. Once they reach the nearest shop, customers just need to click on the withdraw button and transfer the required amount to the merchant via the PhonePe app. Once the amount is transferred, the merchant will give the customer the cash equal to the amount transferred.
PhonePe said there will not be any charges for customers or merchants to avail of this service. The withdrawal limit for customers will be the same as the limit set by their respective banks.