PayNearby has launched an innovative service, UPI Cashpoint, allowing customers to withdraw cash from local retail stores by simply scanning a UPI QR code. This initiative aims to bridge the gap in cash accessibility, particularly in semi-urban and rural areas, by leveraging the widespread UPI network and familiar retail touchpoints.
Key Takeaways
- Customers can now withdraw cash using UPI QR codes at retail stores, eliminating the need for debit cards or Aadhaar authentication.
- The service is powered by IndusInd Bank and integrates with third-party UPI apps, including PayNearby Saathi.
- Transaction limits are set at ₹5,000 per transaction, ₹10,000 daily, and ₹50,000 monthly.
- Retailers benefit from increased footfall and transaction-led income opportunities.
Seamless Cash Withdrawal
In a move to enhance financial inclusivity, PayNearby’s UPI Cashpoint enables users to withdraw cash by scanning a UPI QR code displayed at local retail stores. This process requires customers to use their smartphone, scan the QR code, enter the desired cash amount, and authenticate the transaction via their UPI app. The cash is then dispensed instantly.
This service is a collaborative effort with IndusInd Bank, which provides the backend infrastructure for these UPI-based cash withdrawals. The partnership ensures a secure and reliable system for customers to access cash through their trusted neighborhood stores.
Expanding UPI's Reach
PayNearby’s initiative signifies a broader evolution of UPI beyond just digital payments. By integrating UPI with assisted service models through local retailers, UPI Cashpoint combines digital capabilities with on-ground accessibility. This approach is particularly beneficial in areas where digital infrastructure exists but familiarity and trust in local services are paramount.
Customers can initiate withdrawals through various third-party UPI applications (TPAPs), including PayNearby Saathi, which is in partnership with YES Bank, and other supported UPI applications. These apps are designed to offer a user-friendly cash withdrawal experience, complemented by on-ground support from retail staff.
Transaction Limits and Retailer Benefits
The UPI Cashpoint service comes with defined transaction limits to manage everyday cash needs. Customers can withdraw up to ₹5,000 per transaction, with a daily limit of ₹10,000 and a monthly limit of ₹50,000. A significant advantage of this solution is that it does not require any additional hardware or infrastructure at the retailer’s end, simplifying deployment and scaling.
For retailers, UPI Cashpoint presents a valuable opportunity to increase customer engagement and generate additional income. By facilitating cash withdrawals, stores can expect higher footfall and earn transaction-based revenue, thereby strengthening their role as vital community financial hubs.
Anand Kumar Bajaj, Founder, MD & CEO of PayNearby, commented on the launch, stating, “UPI has become a foundational layer for digital payments in Bharat, and its role is now extending beyond transactions to enabling access. With UPI Cashpoint, we are enabling customers to access cash through trusted nearby retail stores using a simple UPI flow. This reflects how digital infrastructure can be adapted to meet everyday needs, while working closely with our banking partners to strengthen access and participation at the last mile.”
PayNearby’s extensive network spans over 20,000 PIN codes, facilitating access to banking and digital services through local retail networks. UPI Cashpoint further enhances this network by extending essential cash access through an assisted retail model across India.
Sources
- PayNearby Enables Cash Withdrawal Using UPI QR, SMEStreet.