ATM transactions now in sari-sari stores

CEBU, Philippines — Cash withdrawals and even deposits can now be availed through a neighborhood sari-sari store with the introduction of the EasyDebit device.

Operated by Fexco Philippines, the EasyDebit device allows customers to withdraw cash using their ATM card at any locally accredited merchants instead of having to travel to an ATM terminal.

Ann Chan-Foley, co-founder and chairperson of Fexco Philippines, said while this fintech (financial technology) service has been launched in 2017, it has not really penetrated the Visayas well.

Of the 300 devices deployed in Visayas and Mindanao, only 8 percent went to Visayas, of which 11 devices are now working in Cebu.

The company has entered partnership with banks that are homegrown in Visayas and Mindanao such as Cantillan Bank, Rural Bank of Rizal and DBP-owned AI-Amanah Islamic Bank, to enable the rapid and low-cost deployment of banking services to underserviced areas in these regions.

The company is also partnering with micro-small and medium entrepreneurs (MSMEs), including sari-sari store operators to provide the cashless transaction, not only in withdrawing or depositing money, but also for payments.

The goal was to bridge the gap between Filipinos who have little access to financial services and banking institutions.

This is done through a low-investment, easy to install device that is easy to deploy among interested merchants including banks, cooperatives, remittance and payment centers, pawnshops and retail businesses such as convenience stores, and sari-sari stores.

Called as “MicroATM Ng Bayan”, the deployment of this device especially to remotest locations, is also seen to increase the number of Filipinos maintaining bank accounts, or easy access to bank services.

At present, the Philippines is a country significantly underserviced by an ATM network. There are a little more than 20,000 ATMs for 82 million local ATM cardholders.

Thirty four percent of municipalities in the country have no bank presence and 11 percent has no financial access point.

Earlier, Rizal Commercial Banking Corporation (RCBC) president Eugene Acevedo said that the bank will be working with Sari-Sari Store Association in the Philippines, Local Government Units (LGUs), Cooperatives, for banking transactions such as withdrawal, deposit, loans and remittance can be availed of in the neighborhood stores or community-based outlets, or what he described as “agency banking” platform.

“Banking [nowadays] does not have to be brick-and-mortar,” he said adding that with this product, one doesn’t have to go to a physical branch to transact basic banking services. Aside from online banking, agency banking is also seen to gain traction in the short term. (FREEMAN)