Unlike Paytm, Vodafone's M-Pesa is allowing you to withdraw cash using your phone

PM Modi in his first “Mann Ki Baat” post the demonetization drive has cited Kenya`s M-Pesa as an example of an ideal cashless economy.

While most of the country still suffers, 20 days after demonetization, it is great to see that alternatives have already started springing up.

From digital wallets bringing up more merchants online to banks declaring turning villages into digital economies, solutions have started being implemented.

Vodafone India recently took steps to ensure that its 8.4 million M-Pesa customers can encash their digital money from specified outlets.

Unlike Paytm wallet, Vodafone M-Pesa is like a banking agent, which facilitates financial services on behalf of others to enable a customer to go to specified outlets and get cash of same worth if they need it.

To avail, customers need to carry an identity proof to their nearest Vodafone M-Pesa outlet from where they are able to withdraw money in line with RBI guidelines. 56% of M-Pesa outlets are in rural areas so the impact of demonetsation will be lessened on M-Pesa users.

Vodafone M-PESA currently has the largest business correspondent network in the country. According to the company, the distribution network of M-Pesa is almost equal to the total Banking presence in India.

RBI has granted “in-principle” approval to Vodafone M-Pesa for setting up a Payments Bank just like Paytm.

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In emerging market like India, where many consumers have access to mobile devices but no access to a bank account, Vodafone M-Pesa enables financial inclusion and offers convenience of a digital wallet for easy transactions, its unique cash out feature enables users to digitise cash, remit it to family and friends, pay bills and/or withdraw it at their convenience.

Vodafone M-Pesa has also partnered with several government bodies for enabling direct transfer of wages and subsidies – M-Pesa is enabling last mile Government Subsidy distribution and is actively engaged with multiple state governments in the direct benefit transfer of subsidy, pension and salary disbursement under Janani Suraksha Yojana, MNREGA, Pension Transfers, Health Mission (NRHM), MNREGA, Pension disbursements in Haryana and Tie-up with Rajasthan Grameen Aajeevika Vikas Parishad (RGAVP)

Image credits: ICICI Bank