Digital payments platform PhonePe manages to impress parent company Walmart. The digital wallet company’s foray into the digital ATM business is what caught Walmart’s attention. This move by PhonePe is to give itself a competitive advantage over its competitors such as Google Pay, Amazon Pay and Paytm, and the much-awaited WhatsApp Pay.
Also Read: What’s So Special About WhatsApp Pay?
The digital ATM feature will allow a million merchants on its platform to provide cash withdrawal services to customers who are closeby. PhonePe has seen a rather good financial year with payments close to $180 billion and a regular user base of 20 million. The market share of UPI-based transactions are dominated by PhonePe, GooglePay and Paytm by 90%.
CEO of Walmart Internation, Judith Mckenna said that this solution would be revolutionary in transforming cash in India by increasing the capability to access cash by 5 times. At the moment, there are only 2 lakh ATMs in India.
The ‘withdraw’ button on the PhonePe application helps customers convert digital money to cash and for this, they have geotagged 5 lakh merchants that possess excess cash.
Just last month, PhonePe partnered with Bajaj Allianz General Insurance to provide international travel insurance on its platform. This also points to its entry into the digital insurance space.