Singaporean startup raises funding to make ATMs obsolete

Photo credit: Ds02006.

How often do you find yourself in dire need of cash but there’s no ATM near you? The solution, of course, is to find one. But what if you don’t feel like looking?

Here enters SoCash, a Singapore-based startup that wants to help you get cash wherever you are.

The company has developed a software now being pilot-tested that enables small stores to become “cash points.”

It doesn’t compete with banks, but supports them.

Here’s how: SoCash is plugged into the mobile apps of banks. If you want to withdraw cash from your bank, all you need to do is place an order on SoCash within your bank’s app, select a merchant near you, and pick up the cash. SoCash notifies the merchant you selected and pays it a fee once the transaction is done.

In the background, it deducts the amount from the customer’s bank account and credits it to the merchant’s without the need for a machine, a card, and a pin code. This way, the startup replaces the ATM. Everything’s safe since the transaction happens within the bank’s app. SoCash also earns a fee from the bank. People withdrawing, on the other hand, don’t pay anything – but that’s if banks decide not to charge them.

SoCash is looking to offer deposits soon. The concept is the same as withdrawals: the customer gives cash to the store, SoCash deducts the amount from the store’s bank account and credits it to the customer’s. It’s a continuous flow of money.

Co-founder Hari S. says they don’t disrupt banks, but work for them. “Banks love us because we solve a real customer pain – easy access to cash.”

“Small merchants love us as they don’t need to deposit cash in the bank, it gets done automatically and they get paid for it,” he continues. “We are building the largest network of small merchants all connected via our application. They are closest to the consumers and it means that we are building the last mile for practically any service, which can be controlled via software.”

SoCash, which first showcased its product at Tech in Asia Singapore 2016, just announced it raised US$297,000 in seed funding from unnamed angel investors. It will use the money to accelerate product development and build an initial network of 1,000 cash points in Singapore.

Hari says they’re working with multiple banks on launches in Asia and the US. He refused to name those banks, citing non-disclosure agreements, but he notes their engagement is at various stages – from preliminary evaluation to tech validation, integration, and pilot runs.

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