PhonePe’s bet on helping users access physical cash is fraught with risks

Sangeeta Tanwar
PhonePe’s bet on helping users access physical cash is fraught with risks

It may seem counterintuitive, but Indian digital payments major PhonePe is chasing growth by facilitating cash withdrawals. The Walmart-backed platform launched PhonePe ATM service on its app on Feb. 5. The feature allows users to collect physical cash—up to Rs1,000 ($14) a day—from a kirana (mom-and-pop) store and transfer an equivalent amount to the merchant from their PhonePe app.