PayNearby launches UPI Cashpoint for cardless cash withdrawals

PayNearby has introduced a new service, UPI Cashpoint, enabling cardless cash withdrawals at neighbourhood retail outlets, targeting semi-urban and rural markets where physical cash continues to play a critical role.

The offering allows customers to withdraw cash by scanning a UPI QR code at participating stores, entering the withdrawal amount, and authenticating the transaction through their smartphone. The service removes the need for debit cards or Aadhaar-based authentication, aiming to simplify access to cash in underserved regions.

The backend infrastructure for UPI-based withdrawals is powered by IndusInd Bank, extending banking services through PayNearby’s retail distribution network. Customers can initiate transactions using third-party UPI applications, including PayNearby’s Saathi app, developed in partnership with YES Bank, as well as other supported UPI platforms.

The launch reflects a broader shift in the evolution of the Unified Payments Interface (UPI), which is increasingly being leveraged beyond peer-to-peer and merchant payments to support additional financial services. In markets where digital adoption coexists with continued reliance on cash, hybrid models that combine digital infrastructure with assisted, in-person services are gaining traction.

UPI Cashpoint is structured for routine usage, with a per-transaction limit of ₹5,000, a daily cap of ₹10,000, and a monthly ceiling of ₹50,000. Notably, the service does not require additional hardware or infrastructure at the retailer level, which may support faster scalability across existing merchant networks.

“UPI has become a foundational layer for digital payments in Bharat, and its role is now extending beyond transactions to enabling access,” said Anand Kumar Bajaj, Founder, MD and CEO of PayNearby. “With UPI Cashpoint, we are enabling customers to access cash through trusted nearby retail stores using a simple UPI flow.”

For retailers, the model is expected to drive incremental footfall and transaction-based income, while for customers it offers a familiar and accessible channel to access cash without relying on ATMs or formal banking touchpoints.

PayNearby currently operates across more than 20,000 PIN codes, positioning the UPI Cashpoint service as an extension of its branchless banking model. The development underscores ongoing efforts within India’s FinTech ecosystem to bridge the gap between digital payments infrastructure and last-mile financial access.