The Prime Minister Narendra Modi, launched a new digital payments app called BHIM. BHIM stands for Bharat Interface for Money. It is an app, which allows you to make quick and easy transactions, using UPI (Unified Payments Interface). You can download BHIM App for free from Google Play Store.
Using the BHIM App, you can transfer money, from one bank account to another bank account in seconds. With the BHIM app, you don’t need to remember any banking details. You simply need a virtual payment address (VPA). Mobile Wallets are worried that the BHIM App will eat into their business. The strong mobile wallets are facing up to the competition of the BHIM App. The weaker ones are worried for their survival. Let’s learn how the BHIM App is giving a tough fight to mobile wallets.
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With the BHIM App, you can send money to friends and family in seconds. BHIM App is very convenient and secure. You just install BHIM App from Google Play Store. You then select your bank from a list of banks. The BHIM App already knows your mobile number.
The BHIM App automatically matches your mobile number, against the bank’s database. It is able to detect the bank account, whose KYC details you have filled while opening your bank account.
You can use the BHIM App, Anywhere….Anytime. All you need is a smart phone and a bank account linked to that phone number. The BHIM App has been created by the Government of India. It’s most trustworthy.
A mobile wallet is the digital equal of a physical wallet. You open this account with any mobile wallet service provider. You can load cash from your bank account into the mobile wallet.
Cash is stored in your mobile wallet. You can pay for groceries, cab rides and even movie tickets, with your mobile wallet. You can even pay for petrol and diesel, using your mobile wallet at petrol pumps.
The BHIM App works across all banks. Let’s say you have multiple accounts in different banks. With the BHIM App you don’t require several apps. Just the one BHIM App is enough. If you have bank accounts in 3 or 4 UPI enabled banks, all you require is the BHIM App.
The BHIM App will join all your banking functions and help you make cashless transactions, saving you time and money. You can send money to family and friends in seconds.
Mobile Wallet: If you use a mobile wallet, you have to load cash from your bank account into the wallet. You store cash and transfer money to friends and family. But, you are forced to load money in the mobile wallet, each time it runs out of cash.
With the BHIM App, you can transfer money from one bank account to another, without an internet connection. You simply dial *99# from your smart phone. You are directed to a welcome screen with seven options. You can send money, check your balance or even see your transaction history, using the BHIM App.
Mobile wallet: You have to load money from your bank account to your mobile wallet. You definitely need a good internet connection.
The BHIM App has Government backing, which makes it very secure and convenient to use.
Mobile Wallets: Mobile wallets are backed by Private Companies. They do not have the power of Government backing.
The BHIM App has 3 levels of authentication. The first authentication is the mobile number. The second authentication is your bank account linked to the app. The third authentication is the UPI PIN. You have to enter the UPI PIN if you want to send money to family and friends or for any transaction. Mobile Wallets: Mobile Wallets are also quite secure, but the BHIM App is more. Many mobile wallets do not ask for a password or PIN when you make a payment.
India has 125 crore citizens. After demonetization, citizens have to learn how to adopt cashless ways of payment. Days will come when every village in India, will be connected to the internet. Cashless is taking off like an airplane.
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