India’s popular Payments App, PhonePe, allows customers to withdraw cash 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:
First launched in 2016 as a mobile wallet and payment 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 circulation 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.