PayNearby, the hyperlocal fintech network builder, on Monday said it has launched its own mirco ATMs at retail shops to address the issue of money dispensing machines running dry, and aims to deploy 1 lakh terminals in the first year.
The company has tied up with National Payments Corporation of India (NPCI) and Equitas Small Finance Bank for this initiative.
With the launch of micro ATM business terminal, PayNearby has strengthened its product portfolio of money withdrawal services. Now, along with Aadhaar-enabled money withdrawals, PayNearby retailers can also offer cash withdrawals through debit cards, it said in a release.
A handy low cost machine that processes card transactions seamlessly, PayNearby's micro ATM is a cost effective and a smart cash management tool for small retail stores and traders who deal in large chunks of cash on a daily basis, it added.
PayNearby said it has commenced a nationwide launch under its retail network of more than 7.5 lakh retail touch-points across the country.
"The company aims to add over 1 lakh PoS enabled micro ATMs in the first year of its launch. Considering its USPs such as portability, affordability and low maintenance, micro ATMs can very effectively drive financial inclusion while curbing down the infrastructure costs incurred, especially in rural India, where a full-fledged ATM becomes unviable," PayNearby founder & CEO Anand Kumar Bajaj said.
Besides rural India, micro ATMs are also ideal for urban areas where a majority of ATMs are not linked with Aadhaar or don't have access to fingerprint.
It will be useful in the country's deep interiors and states like Assam and North East where Aadhaar number penetration/on-boarding are still minimal resulting in lack of AEPS offerings, it said.
The Confederation of ATM industry (CATMi) has announced its plans to shutdown nearly 50 percent of ATMs due to high maintenance cost of software and equipment upgrades.
PayNearby empowers retailers at the first mile to offer digital financial/non-financial services to last mile, across its merchant points and aims to reach 50 lakh retailers in near future, the fintech firm added.
(Edited by Megha Reddy)