India’s first UPI ATM is here. The latest development comes after Hitachi Payment Services, a subsidiary of Hitachi Ltd, in Japan, announced the launch of Hitachi Money Spot UPI ATM. The UPI ATM has been unveiled as a White Label ATM (WLA) in collaboration with the National Payments Corporation of India (NPCI).

The UPI ATM offers cardless cash withdrawals which eliminates the need for carrying physical debit or credit cards. The ATM allows users to obtain cash from multiple accounts using the UPI app. It is to be noted that WLAs are operated by non-banking entities. The new ATM will not only drive inclusivity but is also seen as a boon in areas where traditional banking infrastructure and penetration of cards is limited.

Besides, the UPI ATM is seen as a positive measure towards preventing issues such as card skimming, a type of financial fraud where devices are installed at ATMs or point-of-sales terminals to gather card information such as PIN and card number to siphon off cash.

How does it work?

In a video demo shared by fintech influencer Ravisutanjani Kumar, the UPI ATM can be seen as a touch panel with the words – ‘Welcome to UPI ATM’ in the centre and ÚPI Cardless Cash’ at the bottom right.

Tapping on the UPI Cardless Cash opens another window with options for cash amounts such as Rs 100, Rs 500, Rs 1000, Rs 2000, Rs 5000, and a button for other amounts. Once a user selects the desired amount, the screen displays a QR code and says “Scan using any UPI App. Once the UPI app (BHIM, GPAY, etc) is opened users need to scan the code.

After the code is scanned, users will be prompted to select their desired bank account and click on Confirm. The next window will show ‘Confirm to withdraw cash’ and users will need to click on Proceed. Later they will have to add their UPI PIN and once done, a confirmation message will be sent. Users will be able to see on the screen ‘We are processing your transaction’. Within a few seconds, the UPI ATM dispenses the selected amount.

How is it different?

Currently, the card-less mode of cash withdrawals is dependent on mobile numbers and OTPs. With UPI-ATM the transaction is carried out using QR codes that can be scanned using UPI applications installed on Android or iOS devices.

The UPI ATM is reportedly built on the Android operating system. As of now Hitachi Payment Services is the only WLA operator who also offers cash deposit function and has access to a network of over 3000 ATM locations.

Source By: indianexpress

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