People no longer carry cash when they go out since the Unified Payments Interface (UPI) is so widely used. With just a phone and the internet, they can make payments online. However, due to UPI, many individuals no longer carry credit or debit cards. This might be troublesome when travelling or in a distant area and need cash immediately.
According to reports, Chandigarh-based fintech startup Paymart India is reportedly revolutionising cash withdrawals with the launch of its new Virtual ATM service. Paymart India Pvt Ltd’s Founder & CEO, Amit Narang, refers to this service as a “Virtual ATM.” Users may conveniently withdraw cash using virtual ATMs without using a real card or going to a physical ATM.
How Can I Use A Virtual ATM To Withdraw Cash?
1. Smartphone and internet connection: To start a withdrawal, users simply need a smartphone with internet access.
2. Mobile banking app: To request a withdrawal from your bank, use the mobile banking app. Be sure the bank has your phone number on file.
3. OTP verification: Your bank will create an OTP and send it to your registered mobile phone when you request a withdrawal.
4. Visit a nearby store: To get your cash, present the OTP to a participating retailer which appears in the mobile banking app.
With this service, cash withdrawals are simple and don’t require regular ATMs or debit cards. The convenience of cash transactions is provided by shopkeepers acting as virtual ATMs.
Who Can Use Virtual ATMs?
According to a Paymart press statement, the six-month pilot program for the virtual ATM service with IDBI Bank was successfully concluded. To launch this service, the fintech company has also partnered with Indian Bank, Jammu & Kashmir Bank, and Karur Vysya Bank.
According to Narang, the virtual ATM service is now offered in a few places, including Chandigarh, Delhi, Hyderabad, Chennai, and Mumbai.
With partner banks, Paymart plans to start test projects in March in preparation for a phased national rollout that should take place by April or May of 2024. Additionally, the business is in advanced talks to collaborate with four other institutions.
“The company has entered into a partnership with CSC e-Governance Services India Limited to further expand the reach of Paymart’s virtual ATM service, leveraging over five lakh locations nationwide to facilitate cash withdrawals,” according to the business.
Features Of Virtual ATM
- No Fees: For the time being, users can use this service without incurring any additional costs.
- Withdrawal Limitations: A transaction may cost as little as Rs 100 or as much as Rs 2,000, with a monthly limit of Rs 10,000.
- Small Cash Withdrawals: You may get small sums of cash from virtual ATMs. However, because the store might not have enough cash on hand, it might not be the best option for making significant withdrawals.
Benefits Of Virtual ATMs for Banks
Paymart outlines the advantages for banks of this new ATM service:
- Cost Savings: By doing away with the requirement to build and operate conventional ATMs, operating expenses are decreased.
- Less Foot Traffic: In bank branches, especially in outlying areas, there is less foot traffic.
- Possibilities For Revenue: Commissions on sales are paid to affiliated retailers, encouraging consumer interaction and business expansion.
