The Government scrapped 500 and 1000 rupee notes on November 8th 2016. The aim of this move….Break the back of corruption and terrorism in India, fueled by black money, usually hidden in 500 and 1000 rupee notes. Another benefit of scrapping these high value notes? You are forced to go cashless.
You and other citizens, love to pay for everything you buy and all services you use, in cash. Yes, more than 95% of transactions in India, are in cash. This was before the scrapping of 500 and 1000 rupee notes. Now, paying by cash is getting difficult. You have to pay…The Digital Way. You can pay for goods you buy and services you use, with debit and credit cards, Unstructured Supplementary Service Data popularly called USSD, Unified Payments Interface popularly called UPI and now, Aadhaar Enabled Payments.
Imagine paying for goods you buy, just by punching in your Aadhaar number…then filling in the amount to be paid and finally…Your fingerprint as your security. There’s more….You don’t require a Smart Phone , a card or even a point of sale (POS) terminal. Too good to be true? Well read on and find out, how to make payments using your Aadhaar card.
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Aadhaar is nothing but a 12-digit unique identification number. It is issued by the Government of India, to every citizen of the country.
Aadhaar enabled payment system, popularly called AEPS, is nothing but a machine, known as a micro ATM. This machine is just like the POS (Point of Sale) machines, which accept credit and debit cards, while you make payments. In a POS system, you swipe your card, key in the PIN and your payment is made. In an aadhaar enabled payment system, you authenticate your payments, using your fingerprints. (Biometrics).
How can you pay using your Aadhaar card? You go to a shop and buy a laptop. You have to make payments to the merchant. The Merchant enters your Aadhaar number and the amount (cost of the laptop), using the touch screen interface of the machine. You then authenticate the payment, using your fingerprint.
How can you do this? The merchant will have a Smart Phone, which would have a finger print scanner connected to it, via an application. You place your finger on the scanner, to authenticate the transaction. Your bank account needs to be linked to your Aadhaar Number (Customer’s Aadhaar Number). The amount gets deducted from your bank account. This amount will be credited to the merchant’s bank account.
UIDAI has introduced Aadhaar Pay Merchant App.
Merchants have to register on this App, by using Aadhaar number, to accept payments. The registration is authorized, using the fingerprint of the merchant.
How can the merchant accept payments from you?
The merchant enters your details such as Aadhaar Number, Bank Name and the amount you pay, for the product you buy. You can authenticate the payment with your fingerprints.
Transfer money to family and friends
You can transfer money to friends and family, using the Aadhaar enabled payment system. You have a POS machine, where you enter Aadhaar number and scan your finger print. You then enter the recipient (Friend/Family Members) Aadhaar number, enter the amount and validate the transaction, using your finger print. The amount you enter gets transferred to your family or friends. The Aadhaar enabled payment system, uses the Immediate Payment Service (IMPS). You can transfer money instantly, 24 hours a day, 7 days a week.
Yes, cashless is taking off in India in a big way. Can Aadhaar enabled payments stay far behind? Aadhaar enabled payments has the power to revolutionize the way, payments are made in the country. Be Wise, Get Rich.
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