India’s PhonePe App Facilitates Cash Withdrawals in Shops
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India’s popular Payments App, PhonePe, allows customers to withdraw cashMoney in physical form such as banknotes and coins. More free-of-charge from shops that the company has partnered with. Currently, a pilot has been launched in Delhi with over 75,000 merchants. Any merchant can sign up for the service with PhonePe’s business app.
How does it work?
Accessing this service is quite simple with just a touch of a finger:
- Install the PhonePe app on your smartphone
- Go to the ‘Stores’ section on the app
- Click on ‘PhonePe ATM’ to see the list of stores where you can withdraw cash
- Go to the store of your choice and select that store on the app
- Click on ‘Withdraw Cash’ and pay the amount
- Collect cash from the cashierInitially, the person who is responsible for the safe, its opening and closing, and the contents that are safeguarded inside it. Nowadays, at a central bank, the person who is responsible for matters related to the treasury and cash. Their signature would usually appear alongside others on the banknotes issued by the bank. More
First launched in 2016 as a mobile wallet and paymentA transfer of funds which discharges an obligation on the part of a payer vis-à-vis a payee. More system, PhonePe is based on the Unified Payments Interface, a real-time payment system developed by the National Payments System of India. It has evolved throughout the years and now offers several additional functions including ordering food, or purchasing gold.
“Our journey has been incredible to say the least, not just in terms of the growth in the number of users and transactions, but also in realising the social impact payments and financial services can create.”, says Rahul Chari, Co-Founder and CTO.
Following the demonetisation of November 2016, India has seen cash in circulationThe value (or number of units) of the banknotes and coins in circulation within an economy. Cash in circulation is included in the M1 monetary aggregate and comprises only the banknotes and coins in circulation outside the Monetary Financial Institutions (MFI), as stated in the consolidated balance sheet of the MFIs, which means that the cash issued and held by the MFIs has been subtracted (“cash reserves”). Cash in circulation does not include the balance of the central bank’s own banknot... More return to pre-demonetisation levels. In 2019, cash in circulation grew by 17%. However, despite the increase in cash demand, the number of ATMs has been declining largely due to the lowering of ATM interchange fees which have reduced the profitability of operating ATMs. With PhonePe’s innovative service, consumers now have an alternative to access cash.
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