DBS Bank customers can now withdraw cash at all Cold Storage, Market Place, Jasons and Giant stores for free, said the bank yesterday.
The service allows account holders to take out up to $200 when they go to the checkout to pay for their goods.
The POSB Cash-Point service, as it is known, is already available at Guardian Health & Beauty, Sheng Siong and 7-Eleven stores, with withdrawals of up to $100 allowed.
Customers have to use a DBS or POSB debit or credit card linked to a savings account. The first 10,000 customers this month and in December who withdraw $200 or more via the service will get an additional $10 credited into their accounts.
DBS said yesterday: "The average number of POSB Cash-Point transactions every month has risen by 115 per cent since last year, with the average customer withdrawing $50 per transaction."
It added that the average monthly amount of cash withdrawn via the service has also grown by 56 per cent since last year.
The wider network has about 800 POSB Cash-Point locations now as well as the 1,100 or so ATMs provided by DBS and POSB.
The Cash-Point service began in July 2013 when DBS and POSB teamed up with 7-Eleven to allow withdrawals at more than 400 stores. The service expanded last year to Guardian Health & Beauty and Sheng Siong stores.
Mr Jeremy Soo, DBS' head of consumer banking group in Singapore, said: "We have chosen to partner with places frequently visited by our customers so that the act of withdrawing cash is integrated with part of their daily journey."