This post is for the merchants, shopkeepers and business owners. In this post, I would tell you about the BHIM Aadhaar pay and Aadhaar Enabled Payment system (AEPS). These system facilitates the cashless payments in the easiest way.
AEPS is very useful if your customers are not comfortable with the smartphone-based UPI apps. However, to use the Aadhaar Payment system, you have to make some arrangements. I would give details about all these things. But let me introduce you to the Aadhaar Enabled Payment System (AEPS) and BHIM Aadhaar Pay merchant app.
What is AEPS
For any cashless payment, the payer has to prove his authenticity. In the UPI app, the mobile phone and UPI PIN is used for authentication. While in Card payment, the card and ATM PIN is used. Similarly, in case of AEPS, Aadhaar number and Fingerprint is used.
Thus, in this payment system, the payer does not require smartphone or debit/credit card. A technically ignorant person can also pay through this system.
To authenticate the payer’s fingerprint, the merchant requires a fingerprint scanner. It also needs a smartphone to make contact with UIDAI database. The UIDAIverifiess the fingerprint of the user.
So a customer gives his Aadhaar number to the merchant. The merchant fills the Aadhaar number and amount to pay. The system asks the fingerprint of the payer. After the successful authentication, the payment is done between the bank accounts.
Benefits of AEPS for Merchants
The merchants would have following benefits of Aadhaar Enabled Payment System.
- The merchant can take payment from the customers which are not carrying cash or card.
- It can also take payment from the customers who do not use smartphone or UPI apps.
- The banks do not charge any fees for this transaction. The government has waived fees till 2019.
- The payment would directly go into the bank account of the merchant.
- It may be useful when you are struggling for the change.
Negatives of AEPS
The AEPS has some advantage but there are some negatives as well.
- People are sceptical about sharing their Aadhaar number. Thus it may be hard to convince a new person.
- Entering 12 digit Aadhaar number is cumbersome. Card swipe or QR code scan is easier.
- Often fingerprint capture takes time. It may be difficult to authenticate if fingerprints are not readable. It is common with old age people and labourers.
- The small cashless transactions make hundreds of entry in the statement. The important entry may be lost in this crowd.
Application of AEPS
The Aadhaar Enabled Payment system is used in two ways.
BHIM Aadhaar Pay Merchant App
The first application is designed for merchants. To use this method, you have to use BHIM Aadhaar pay App and fingerprint scanner. It can be used only to take payments from the customer. Every bank can launch its own BHIM Aadhaar App for merchants like an UPI app. In this post, I am discussing the BHIM Aadhaar merchant app. Some BHIM Aadhaar Merchant apps are listed below.
- BHIM Aadhaar SBI by State Bank of India
- PNB Aadhaar Pay
- BHIM Aadhaar Baroda pay by Bank of Baroda
- EazyPay by ICICI Bank
- SmartHub by HDFC Bank
Another application of AEPS is micro ATM. This is used by the banking correspondent. It uses the micro ATM to access the customer’s bank account using the Aadhaar and fingerprint of the customer. The BC uses Micro ATM for deposit and withdrawal. The BC keeps cash with him/her to perform the actual transaction. The BCs ger Micro-ATM through his/her bank.
Steps to Use BHIM Aadhaar Merchant App
To use the Bhim Aadhaar Merchant App, you have to do the registration. But before that, you should check all the requirements.
- You should have a current account with a bank. The Aadhaar number and mobile number should be linked to the account.
- You should have a smartphone which can power up the Fingerprint Scanner.
- An SQTC certified Fingerprint scanner. There are about 50 companies certified by the SQTC. Some banks specify brands of the scanner. Some of the popular fingerprint scanners are listed below. You can also buy these scanners online.
- Safran Morpho MSO 1300 E2 Fingerprint Scanner
- Mantra MFS 100 (Latest Version) USB Fingerprint Scanner
- Secugen FingerPrint Scanner
Download BHIM Merchant App
To use the AEPS, you have to download the merchant app of your bank. Every bank has its ows merchant app. These apps facilitate the payment through AEPS. Along with it, you may have other payment options as well.
- Go to the Google Play store and search for the Merchant app of your bank. Check for the Aadhaar Pay facility in the app.
- I have listed the name of some merchant apps. You can directly search the name at Google Play store.
- Download the App and install.
When you first time open the merchant app, you are required to register. In the registration process, you have to enter your bank account number. Note the bank account should be from the same bank of which you have downloaded the app.
You have to fill the registration form and enter the Aadhaar number. On the basis of your Aadhaar number, the bank fetches your account number. If you have multiple accounts, you have to choose the primary account for AEPS.
After the instant approval, you can start taking payment through the app. Most of the banks approve registration online.
Keep your fingerprint scanner connected to the smartphone. Plugin the scanner into the charging port.
To get payment from the customer, you have to enter following information.
- Aadhaar number of the customer
- Bank of the customer
- Once you enter these data, the app would ask for fingerprint authentication.
- Put any of the fingers of the customer on the scanner.
- After successful authentication, the money is instantly credited to your account.
Note: You can take payment of maximum ₹2000 using the single AEPS transaction. A customer can pay maximum ₹5000/day using the AEPS. Many banks give more ways of taking payment with the AEPS in their merchant app. Hence, the same app can be used for UPI payment as well.