A public telephone with a cash payment function is connected to a server of a banking agency through a telephone network and verifies whether a card, such as credit card, inserted by a user is available for the requested cash service and, as the result of the verification, provides an amount of money required by the user from a currency cassette, thereby facilitating the cash withdrawal for the user. Therefore, an operator can use an inexpensive telephone network, instead of an exclusive line, thereby reducing operational cost.