PayNearby Aadhaar ATMs withdrawals cross INR 400 billion

By Leandra Monteiro

PayNearby, an Indian branchless banking and digital payments network announced that it has recorded Gross Transaction Value (GTV) worth INR 540 billion in FY 20-21, with an exit month GTV 32% higher than the average monthly GTV booked in FY 19-20. The company generated INR 2.9 billion of revenue for its retail partners and about INR 0.4 billion of fee for its banking partners in the same financial year.

FY 20-21 saw severe loss both in lives and livelihoods and agent banking network played a crucial role in ensuring relief disbursements reach the hands of the intended. Aadhaar ATM, saw a huge surge across PayNearby retail stores, primarily led by increased adoption in rural, semi urban and tier 2 towns. The company reported AePS withdrawals worth INR 100 billion in Q4 FY 2021 as against INR 76.5 billion for the same quarter last year.

The overall value of AePS transactions in FY20-21 stood at approximately INR 400 billion as against INR 315 billion in FY19-20, thereby registering a Y-o-Y growth of 27%. In terms of volume, the company registered 180 million transactions in FY20-21 as against 125 million in FY19-20, registering a Y-o-Y growth of 46%. The growth all through FY20-21 included various relief funds disbursed by the Government to support citizens during the pandemic in addition to the normal ATM withdrawals that were assisted by the Agent network.

Overall value of assisted digital transactions at PayNearby retail stores for Q4 FY2021 stood at INR 152 billion as against 117 billion for the same quarter last year, representing a growth of close to 30%. In addition to growth in AePS transactions, newer product categories like flexi savings instrument (Bachat Khata), COVID insurance, increase in digital payments offtake including mPOS, UPI QR, AadharPay and Payment Gateway services led to the growth.

Speaking on the progress, Anand Kumar Bajaj, Founder, MD & CEO said, “Our assisted digital distribution services ensures low cost delivery of accessible banking services to every section of the society without discrimination. Tech savvy and oblivious segments both access our Agents for ATM withdrawals, digital payments, bike insurance, small value savings and booking travel tickets. The steep rise in volume and values across our platforms are a testimony to a burgeoning revolution within the digital banking ecosystem. The numbers are a clear reflection that real Bharat in tier-II cities and beyond are adopting digital services through their trusted local stores nearby. We need to port this local trust and layer it with the right tools, training and technology to universalize digital payments and digital banking in India.”

He went on to add, “At 50 Lakh app downloads and an annual transaction processing of INR 540 billion of digital financial services, we are still at the tip of the iceberg. There is a large unexplored, underserviced market which needs to be brought up the curve by simplifying high end technology for the bottom of the pyramid. We will continue to innovate every single day to ensure form factor agnostic digital payments and digital banking services reach the masses. As we yet again enter the second wave of the pandemic, it is critical to cement financial architecture to ensure seamless access to financial services in the hinterlands of the country.”

Anand further added, “We also feel extremely fortunate to be able to provide stable income opportunities for our Digital Pradhans. It has ensured families across the country had the means to sustain this economic turmoil. Our focus on our Digital Pradhan’s growth and sustainable livelihood will always remain a priority objective at PayNearby.”