Former PhonePe CEO’s startup Paymart to offer ‘Virtual ATM’ in partnership with 5 Indian bank

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Former PhonePe CEO’s startup Paymart to offer ‘Virtual ATM’ in partnership with 5 Indian bank

Paymart India Pvt. Ltd., a pioneering Fintech startup, is poised to transform the ATM landscape in India with its innovative Virtual, Cardless, and Hardware-less Cash Withdrawal service. In a strategic move, Paymart has forged partnerships with five prominent banks, including IDBI Bank, Indian Bank, Jammu & Kashmir Bank, and Karur Vyasa Bank, to roll out this ground-breaking service nationwide. The company is also in advanced discussions with four additional banks for further collaboration.

The Virtual ATM service offered by Paymart is set to empower local shopkeepers, converting them into essential hubs for cash withdrawals without the need for traditional ATM machines or other hardware. Through this service, customers can seamlessly withdraw cash from their own accounts at conveniently located merchant networks affiliated with Paymart. The process is swift and secure, utilizing a simple OTP-based authentication system to ensure the utmost safety for transactions.

While the Virtual ATM service has been successfully piloted with IDBI Bank for over six months, Paymart anticipates launching pilot programs with its partner banks in February/March, with a phased nationwide rollout slated for April/May 2024.

Mr. Amit Narang, Founder & CEO of Paymart India Pvt. Ltd., highlighted the significant benefits of this innovative service, stating “”As we embark on this journey to redefine accessibility and efficiency in banking services, Paymart is proud to introduce our Virtual ATM service. With a relentless focus on enhancing efficiency and customer experience, empowering financial inclusion, and ushering in a new era of branchless and digital banking, we are poised to revolutionize the financial landscape of India. Our future-ready technology, coupled with direct connectivity to banks’ Core Banking Systems, positions us as a versatile Cardless Switch, complementing existing card operators and paving the way for a more inclusive and accessible banking ecosystem.”

Paymart has also entered into a partnership with CSC e-Governance Services India Limited to further expands the reach of Paymart’s Virtual ATM service, leveraging over 5 lakh locations nationwide to facilitate cash payouts.

Paymart’s merchant aggregator portal serves as the central platform connecting customers’ mobile devices, banks, and merchants. This seamless integration enables bank customers to withdraw cash anywhere in the country, revolutionizing access to financial services.

The innovative Virtual ATM service not only addresses the acute shortage of traditional ATMs but also offers a myriad of benefits for banks, customers, and merchants:

 Benefits for Banks:

  • Expanded Reach: Virtual ATMs enable banks to serve customers in previously underserved areas.
  • Cost Savings: Elimination of capital and maintenance costs associated with traditional ATM infrastructure.
  • Reduced Branch Footfall: Virtual ATMs decrease reliance on physical branches for cash withdrawals, easing operational burdens.
  • Efficient Cash Management: Banks can optimize cash utilization and reduce idle cash reserves.

Benefits for Bank Customers:

  • Convenient Access: Customers can withdraw cash from nearby shops, eliminating the need for long trips to bank branches or ATM searches.
  • Seamless Transactions: Withdrawals are hassle-free and secure, enhancing overall convenience.

Benefits for Merchants/Agents:

  • Increased Foot Traffic: Affiliated merchants experience higher customer footfall, driving business growth.
  • Additional Revenue: Merchants earn commissions on transactions, creating new revenue streams.
  • Efficient Cash Handling: Virtual ATMs reduce idle cash held by merchants, optimizing store operations.

India, as the world’s largest cash economy, stands to benefit immensely from this innovative approach to cash withdrawal. With only a fraction of its vast population currently served by traditional ATMs, Paymart’s Virtual ATM service promises to bridge this gap, revolutionizing access to financial services across the country.

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