HNB records sharp spike in cardless transactions during COVID lockdown

HNB PLC has reported a 70 per cent increase in the use of its cardless cash withdrawal facility, Cash to Mobile during the peak of the COVID-19 pandemic.

Through the period of January to May 2020, the bank witnessed an average (month-to-month) increase of 60 per cent on Cash to Mobile transactions. The facility saw a significant 127 per cent increase in unique users’ interactions in March 2020, as Sri Lankans from across the country not only completed essential transactions but also transferred funds to their loved ones, who used the facility to withdraw funds from an HNB ATM without a card or account with the bank, the bank said in a media release on Wednesday.

“The sudden spike in digital cash payments indicate that Sri Lankans are increasingly embracing alternative transactional formats and finding creative uses for these kinds of services. Especially at a time when social distancing measures are rigorously practised, services like cardless cash withdrawals were becoming a popular method for completing day- to-day transactions,” said HNB Deputy General Manager- Retail and SME Banking, Sanjay Wijemanne.

This included everything from paying their groceries to tuition fees to helping out a loved one in need of emergency funds. Having noticed the increased volume of transaction of the cash to mobile facility, during the peak of the pandemic, HNB waived off the handling fee for the period of April and May.

The facility allows HNB account holders to transfer up to Rs. 40,000 per transaction to a mobile through the bank’s mobile banking portal. The receiver can then use the PIN which will be sent via SMS to withdraw cash from any of the 617 HNB ATMs across the country.