Digital Payment is becoming easier day by day. The BHIM Aadhaar Pay is the most easy mode of the cashless transaction. Because of this payment platform, you don’t require card or mobile. You can pay at any shop only by using your thumb impression. The BHIM Aadhaar Pay is developed by the marriage of UPI platform and Aadhaar biometrics.
The Government launched BHIM Aadhaar pay platform on the birth anniversary of Dr. Bhim Rao Ambedkar. Along with that, it also launched a cashback and referral scheme for BHIM users. The Indian government is excited with the success of BHIM App. It has already added Aadhaar card as a payment mode in BHIM. And with this latest step, it is taking BHIM to another level. In this post, I am going to tell you everything you should know about BHIM Aadhaar Pay. I will also tell you about the cashback and referral scheme in this post.
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What is BHIM Aadhaar Pay?
BHIM Aadhaar Pay is a payment interface for merchants. It allows merchants to receive digital payments using only Aadhaar number and fingerprint of the customer. The interface uses Aadhaar to connect with merchant’s as well as customer’s account. In BHIM Aadhaar Pay, payment goes directly into the merchant’s bank account in real time. It is a revolutionary step towards the less-cash economy. You do not need to have a smartphone or payment card. You only need an Aadhaar linked bank account.
BHIM Aadhaar Pay Platform is the next step of UPI payment system. In the UPI platform, your linked mobile number works for basic authentication. But in the BHIM Aadhaar Pay system your Aadhaar biometrics (fingerprint, iris) is used for authentication. As there are many ‘UPI’ based apps, there would be many ‘BHIM Aadhaar Pay’ apps. Some banks have launched BHIM Aadhaar Apps for their merchant customers.
The ‘SBI Aadhaar Pay’ app is available since Feb 2017. You can get it from the Google Playstore. However, every bank has not launched its app at Playstore. Rather, merchant has to contact bank directly for the app. The bank would give the download link after verification.
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How does BHIM Aadhaar Pay work?
BHIM Aadhaar Pay platform uses Aadhaar number of merchant and customer to complete payment. As BHIM Aadhaar Pay is only for merchants, customers do not need an app to install it on their phones.But if you are a merchant, then you need to install BHIM Aadhaar App on your Android or iOS smartphone. Thereafter, you need to link your bank account using Aadhaar number with BHIM Aadhaar Pay app. After linking your account with BHIM Aadhaar Pay app, you will be able to receive payments from customers.
When you enter customer’s Aadhaar number, BHIM Aadhaar Pay asks for fingerprint authorization. Now, your customer needs to authorize the payment by putting his/her finger in connected fingerprint scanner. Your customer must have an Aadhaar linked bank account to use BHIM Aadhaar Pay. If the customer does not have an Aadhaar linked bank account. Then you cannot receive payments from him/her using BHIM Aadhaar Pay platform. Because BHIM Aadhaar Pay is based on Aadhaar Enabled Payment System (AEPS). Hence, it uses Aadhaar number to connect with yours and customer’s account.
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How To Use BHIM Aadhaar App (For merchants)
If you are a merchant and wants to receive payments using BHIM Aadhaar Pay, you have to ways to proceed.
- You can install BHIM Aadhaar Onboarding app from the play store. After installing the app, fill your details such as name, address, phone number and Aadhaar number. You also need to choose the bank in which you have your account. After filling all the details, generate the request to the bank. Thereafter, your bank will contact you and help you to complete the registration. When your registration gets completed, you will get the link to download BHIM Aadhaar Pay app. You will also get the information to activate the app.
- You can Directly contact to your bank and ask for the BHIM Aadhaar Pay app. The bank would verify your credentials and give you the link to download app.
Steps to set up UP BHIM Aadhaar App
- Now, install BHIM Aadhaar Pay app on your smartphone.
- You have to connect a fingerprint scanner with your smartphone. Fingerprint scanners are easily available for around ₹2000 in India.
- Thereafter, you need to link your bank account with the app. For this, enter your Aadhaar number in the app.
- Now, scan your fingerprint using the scanner you connected with the smartphone. After successful authentication, your bank account will be linked with the App.
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Benefits of BHIM Aadhaar Pay
Getting digital payments was not easy for merchants. They had to apply to get a POS (Point of Sale) machine to receive payments. The process to get POS was lengthy. Moreover, they also had to spend money on several charges. But with BHIM Aadhaar Pay, they don’t need to apply for a POS machine. Actually, they don’t even need to have a POS machine. Their smartphone is now fully capable of receiving digital payments. They only need a fingerprint scanner with BHIM Aadhaar Pay. And the services of BHIM Aadhaar Pay are absolutely free.
BHIM Aadhaar Pay is far more convenient than the traditional card or cash payments. It clears the hassle of swiping cards in swipe machines and entering card number and PINs. Even a customer need not have a card or smartphone to use BHIM Aadhaar Pay. In BHIM Aadhaar Pay service, the payment completes using merchant’s smartphone. Even the customers don’t need to install BHIM UPI App or any other app. They only need a bank account linked with Aadhaar and their fingers. It is an interesting, secure and convenient way to make payments, isn’t it?
Cashback and Referral Offers
The government announced a cashback offer for merchants. Along with that, a referral offer for normal users is also announced. The government has set aside a budget of ₹495 crores for this scheme. This budget is for the period of six months only.
If you are a merchant, then you will get cashback of upto ₹300 per month on transactions. The government is giving cashbacks to promote BHIM Aadhaar Pay among merchants.
If you are a normal BHIM user then, you will get a referral bonus. You will have to refer BHIM to others. And when they complete 3 transactions totalling a minimum of ₹50, you will get a ₹10 referral bonus. Also, the new user will get ₹25 for downloading and transacting with BHIM App. The government wants people to use BHIM App as their payment mode. That is why it is promoting BHIM too heavily by giving cashbacks and referral bonus.