With the advent of technology, digital payment transactions such as net banking, UPI, mobile wallets, have continued to rise from May this year and have recorded high transactions. National Payments Corporation Of India (NPCI) had released data that showed an increase in the use of digital payments because customers have reduced the use of cash owing to the fear of being transmitted with the Covid-19 virus. Among these digital payment solutions, UPI was the most preferred method and in June, transactions worth INR 2.62 lakh were carried out. The Digital wave of UPIs, Micro ATMs and the cash race in rural areas thus has changed alot.
CASH IS STILL THE KING IN RURAL AREAS- WHY?
According to a report by Credit Suisse, 72% of India’s consumer transactions take place in cash. This data might appear surprising given the pace at which people are opting for digital payment solutions. Although the pandemic has resulted in an upsurge of digital payment methods in urban areas, the rural areas of India present a contrasting scenario. A large number of people in the rural regions rely on cash for meeting their needs because of several factors, such as lack of sufficient banking infrastructure (proper banks, ATMs), unavailability of proper internet connection, lack of digital literacy among people. The lack of digital infrastructure forces the people of remote and rural areas to still depend on cash for almost all their transactions. If people are provided with the necessary infrastructure and better digital solutions, they will certainly turn to digital payment solutions. This is where the role of Micro ATMs come into play.
WHY MICRO ATMs AND ARE THEY SAFE?
Micro ATMs look like refashioned POS machines, offers both a card-swipe facility and a biometric fingerprint reader. Cash usage in the remote and rural regions continue to exceed the digital modes of payments, as evidenced by the rising value of payments done through Micro ATMs. The standards of Micro ATMs ensure that transaction information is appropriately encrypted at the application layer. Micro ATMs are cheap to set up and operate, are portable which makes them ideal to provide banking access for under-banked areas. Moreover, customers can make various utility payments (electricity bills, recharges, ticket booking, etc.). People, can also withdraw, deposit, or transfer money by using Micro ATMs. Ashish Ahuja, the chief business officer at Fino Payments Bank says, “another big advantage is that this model provides additional income for merchants, with a Micro ATM the cash is getting used and he is earning something on a per-transaction basis.”
Paymonk offers the best Micro ATM solution which is fast, secure, and efficient. We provide Micro ATM services with various features, customized reporting, and an attractive commission margin on each transaction. Paymonk’s Micro ATM services are designed as a solution to bridge the banking gap, especially for rural and remote areas. We empower local retailers, shopkeepers with these devices by enabling financial payments.
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