PhonePe has launched its own ATM-like service that allows users to convert money in their bank accounts to cash. The UPI-based payments platform announced its new PhonePe ATM feature which allows users to send money to its merchant partners using the app and take cash for the same amount.
The feature is currently live and active in Delhi/NCR on a pilot basis where over 7,500 merchants have signed up for the service.
The Walmart-owned company said that it will scale up the service based on the response it receives in NCR (National Capital Region).
Merchants can sign up to be ATMs on the 'PhonePe for Business' app. The platform allows them to enable or disable the service at will, based on their cash flow.
For customers, the cash withdrawal limit is set at Rs 1,000 per day.
Through this facility, PhonePe will not just allow customers to encash their deposits through secure means, it will help merchants avoid multiple trips to the bank branch to make deposits. Further, the company seeks to increase footfalls for its merchant partners.
It will also push adoption of UPI payments by consumers and merchants.
How to use PhonePe ATM?
- When in need of cash, a customer can open the PhonePe app, tap the store tab and select the PhonePe ATM icon to locate nearby shops with the facility.
- At the store, the user has to select the withdrawal option to transfer the desired amount to the merchant over the app.
- On receiving payment, the merchant will give the equivalent amount in cash to the customer.
- PhonePe said that it will not charge customers or merchants for the service.