Digital wallet company PhonePe has started digital ATM service using which its customers can convert digital money (wallet balance) into cash through a ‘withdraw’ button on the PhonePe application.
To give this service, the Walmart-owned company has geotagged nearly five lakh merchants with excess cash so that customers can visit their nearby merchant store to convert their digital balance into cash. PhonePe plans to increase merchant engagement on its platform by the new value-added service for both local shop owners and consumers.
“We are seeing that banks are not finding it viable to operate ATM and that is the reason several ATMs are dry on cash,” the Economic Times quoted Vivek Lohcheb, Head of Offline Business Development, PhonePe as saying. “It’s even more (of a problem) in tier 3 and 4 towns where the lack of availability of cash has become a cause for concern,” he added.
The digital wallet company believes that including such value-added services to existing business channels, in the absence of Merchant Discount Rates (MDR), would be the key to future growth in an already competitive market with the likes of Paytm, Google and now Whatsapp facing off to dominate merchant and customer engagement modes, the publication said…Read more>>