Cash might be losing ground to digital payments globally, but in Pakistan, it’s still very much in charge. Managing and depositing cash was traditionally a manual, time-consuming task—until cash deposit machines (CDMs) were introduced to simplify the process.
Let’s take a look back at the journey of cash deposit machines in Pakistan and how Azimut played a pivotal role in shaping the future of cash digitization across the country.
Challenges With Cash Digitization
Historically, depositing cash was a manual, time-consuming process. Customers had to visit a bank, wait for their turn, hand cash to a teller, and receive a receipt—a particularly inconvenient routine for those managing large sums of cash on a daily basis.
Cash deposit machines (CDMs) were introduced to streamline this process, but by 2018, Pakistan had only around 55 CDMs compared to 13,000 ATMs, most of which were located in major cities. These early machines also came with significant limitations: users needed debit or ATM cards to complete transactions, and rejection rates were alarmingly high, often over 50%, leaving many frustrated.
Further complicating matters was the unique nature of Pakistani currency. Made from cotton, the notes tend to expand and accumulate dirt over time, creating issues for machines that were designed to handle polymer-based currencies.
Azimut tackled these challenges head-on, and today, more than 600 of its cash deposit machines are in operation across Pakistan, handling approximately 20,000 transactions each day.
Azimut’s Response to a Growing Need
Azimut’s success is rooted in its decision to develop cash deposit machines from the ground up for emerging markets, tailoring them to meet the specific needs of the Pakistani market. With 9.11 trillion rupees in circulation—a significantly high volume by global standards—it was essential to create machines capable of efficiently handling large sums of cash.
Through extensive research, Azimut developed advanced billset technology that allowed their machines to accept all types of currency notes, regardless of wear and condition. This, combined with the integration of NADRA’s biometric database, enabled anyone to use the machines without needing a debit or ATM card. With a 99% acceptance rate and the ability to process bulk cash swiftly, Azimut’s machines addressed many of the frustrations of earlier models, offering a far more seamless user experience.
Recognizing that many merchants, especially those less familiar with digital banking, relied heavily on cash transactions, Azimut also focused on simplifying the deposit process. By minimising the steps required, the machines became a highly efficient, user-friendly solution for businesses handling large volumes of cash.
Initially, limited access to CDMs posed a challenge, but Azimut’s strategic partnerships with major banks such as Bank Alfalah, Faysal Bank, UBL, Meezan Bank, and Bank Al Habib enabled nationwide deployment. These banks have since reported increased cash deposits and improved customer engagement. One partner even reduced its teller workforce by 50% after adopting CDMs, underscoring the efficiency of the technology.
Today, Azimut’s machines process transactions worth 2 billion rupees daily, transforming cash deposit systems and creating a thriving cash tech ecosystem across Pakistan.
What’s Ahead?
We think this is only the beginning of what is possible if cash digitization is cost-effective and available 24/7. Unlike cash dispensing, we think these are the ingredients for digitising payments, as they help bank customers move away from, rather than towards more cash transactions. We are excited about the next few years as we innovate further in how banks handle cash, particularly in emerging markets.
BOOK A FREE DEMO
