The Aadhaar payment app was launched with the aim of making the economy cashless through digital transactions. Though there are other UPI apps that serve the same purpose, the Aadhaar app contains certain special benefits like payments using finger print scan that makes the app important in both rural and urban India.
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The BHIM aadhaar pay app enables merchants receive payments from customers through aadhaar authentication. It is a payment interface that allows the merchants to receive payments digitally and enables funds to reach the merchant’s account directly in real time. It is a step taken towards making cashless payments and an individual does not need to have a smartphone or a payment card to make use of the BHIM app. The individual only needs to link his aadhaar to the bank account.
This app makes use of the Aadhaar number of the merchant and the customer to connect the accounts to complete the payment. The app is only meant for merchants and the customers do not need to download this app on their smart phones. The merchants download the BHIM Aadhaar pay on their android or IOS smart phones. The next step is to link the BHIM app with Aadhaar number and bank account of the merchant. After the app gets linked to the bank account, the merchant is able to receive payments from the customer.
When the merchant enters the customer’s Aadhaar number, the app verifies the customer through finger prints. The customer then proceeds to authorize the payment by scanning the finger prints in the scanner. The finger print acts as a password for the payment. However, it is important to note that the customer must link his bank account to Aadhaar to use the BHIM payment app. This is important as the BHIM Aadhaar pay is based on the Aadhaar enabled payment system.
The merchants using the BHIM Aadhaar Pay enjoy the benefits of receiving digital payments in an easy way. In the past, merchants had to apply to get a point of sale (POS) system to receive payments digitally. The process to receive the POS machine was lengthy and expensive as well. But with the BHIM Aadhaar pay, the merchants will save money and time as the app is compatible to smartphones. The merchants can receive the payments digitally by downloading the app and the services of the app can be availed free of cost.
The BHIM Aadhaar pay is also quite easy vis-a-vis card swiping or payments through cash. A customer can easily pay by the finger print scan and will no longer have to go through the hassles of card swiping and entering the PIN. This is a more secure method of payment as the customer no longer needs to carry cash.
The requirements for using this app are listed below:
There is certain limitation of using the app for payments. The list below shows the limitations of using the Aadhaar payment app:
· Aadhaar payment App makes the payment method easier for the customers. However merchants bear extra cost of purchasing the fingerprint scanner. It is a onetime investment by the merchant. The merchant still saves some money as the scanner is cheaper than the POS machine. The price of fingerprint scanner starts from Rs 2,000.
· The app cannot be used to make payment from one person to another. The app can only transfer money by scanning the fingerprints.
· The app works on internet; therefore it is difficult to use the app in areas with low network or internet coverage.
· The unreliable internet connection can be an irritant. It can also turn into a headache.
A comparison of Aadhaar Payment app with the UPI app is natural. Both of these apps are designed to transfer money instantly in real time. The working of both the Aadhaar pay and the UPI apps are similar. However, both of these apps have their uses depending on the situation.
For cases like person to person fund transfer, the UPI apps are helpful as they do not require a fingerprint scanner. The funds can be transferred directly to the bank account of the receiver by providing the bank details. The payer only needs a Smartphone and the app to make payments.
On the other hand, at a merchant shop, the Aadhaar Payment apps would be a better option as it is swift and does not require a Smartphone or internet connection from the customers end. Aadhaar Payment app has the potential to be more popular in the rural area.
The debit and the credit card facilities are important for cashless transactions. However, they are not very popular among the masses. The reason for the failure of these swipe cards is their charges. The card companies like Visa and MasterCard levy a charge of 2% on the card payments. But with the Aadhaar payment app a customer or a merchant will not have to worry about these charges. The payments made with Aadhaar Payment app do not have any extra charges. Hence this method is accepted broadly by merchants as well as customers.
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