According to PayMart, the company is building an alternative to traditional ATMs (automated teller machines) to boost financial inclusion in remote parts of the country.
“This investment will help us build our technology and accelerate our development process,” Amit Narang, founder of PayMart said.
Chandigarh-based PayMart was founded by Amit Narang in 2015. The firm lets merchants use excess cash to give credit to individuals and the repayment does not require multiple bank deposits.
This intervention can also provide merchants some extra income through commissions and incentives.
While, as per PayMart, India has a shortage of ATMs and about 15% of these remain dry at any given point of time. The problem is worse in rural areas where people may have to travel 15 kilometers just to access an ATM or bank.
PayMart leverages technology to convert next-door shop owners into ‘cash points’ for individuals to easily withdraw money without having to travel long distances or looking for an cash-filled ATM.
The firm claims to have partnered with a big private bank and has planned to launch the service in September. Further, the company also plans to tie-up with all the 60 banks in India and thus become a cash withdrawal gateway.