PayNearby has become the first Business Correspondent in India to roll out a fully integrated solution for cash withdrawals via UPI, expanding how users can access physical cash in a digital-first payments environment.
Developed in partnership with IndusInd Bank and supported by YES Bank, the solution allows customers to withdraw cash from nearby retail outlets using UPI. The process removes the need for debit cards or Aadhaar-based authentication, relying instead on standard UPI apps for transaction authorization.
PayNearby is an Indian fintech platform that enables local retailers to offer banking and financial services such as cash withdrawals, deposits, money transfers, and bill payments. Acting as a Business Correspondent, it extends last-mile financial access to underserved communities through a large network of neighborhood merchants.
The launch builds on PayNearby’s existing network of over 200,000 local merchants, who act as banking access points in areas where traditional infrastructure remains limited. By enabling UPI-based withdrawals at these locations, the company is extending the utility of India’s most widely used digital payment system into everyday cash access.
While UPI has seen rapid adoption for digital transactions, cash continues to play a central role in India’s economy, particularly in rural and semi-urban regions. PayNearby’s model addresses this gap by connecting digital payments directly to physical cash distribution, without requiring additional tools or processes from the end user.
From a user perspective, the system simplifies withdrawals. Customers can initiate a transaction through their UPI app and collect cash from a nearby retailer, avoiding the need to carry cards or share sensitive identification details. For merchants, the service adds another revenue stream while reinforcing their role as local financial service providers.
The move also reflects a broader shift in how banking services are delivered. Instead of relying solely on branches or ATMs, financial access is increasingly being distributed through merchant networks and fintech platforms. Business Correspondents like PayNearby are becoming key intermediaries in this model, particularly in underserved regions.
Strategically, the rollout positions PayNearby to capture a larger share of UPI-driven transactions by making the system more practical for users who still rely on cash. It also highlights growing collaboration between fintech firms and banks to expand financial services beyond traditional channels.
As digital payments mature in India, the next phase of growth is likely to depend not just on adoption, but on usability. Integrating cash access into UPI ecosystems could play a central role in that transition.
