BHIM Aadhaar Pay Merchant Android Based Apps are being launched by various banks like SBI, SYndicate Bank, Bank of Baroda, Canara Banj, ICICI Bank, IDFC Bank etc with the help of NiTi Aayog and UIDAI. The BHIM Aadhaar Pay payment will help merchant to get payment from the customer through finger scanning only and payment will be credited through Aadhaar linked bank account.
In simplest term BHIM Aadhaar pay is the digital payment system where payment can be made to any merchant through Android app from customers using their biometric data or data that is encrypted under UIDAI’s Aadhaar number.
Read : Aadhaar Mandatory for Filling Income Tax Return (ITR)
What is BHIM Aadhaar Pay Application ?
Aadhaar Pay apps is being developed by IDFC Bank, NPCI with the help of UIDAI. The android apps of different banks can be downloaded from Google Play Store, can be used to make transactions just with the use of biometric data stored in Aadhaar.
How Does Aadhaar Pay work ?
- Any Merchant linked to their bank of choice downloading the Aadhaar Pay Merchant Apps from Google Playstore or iOS if available .
- After Installing the Aadhaar Pay apps on mobile, Merchant has to attach external fingerprint/biometric scanner linked to installed smartphone.
- The Merchant account will be linked with the bank through mobile number.
- Being a customer, One just needed to provide the Aadhaar number with corresponding linked bank account.
- Once the setup is complete, the customer can provide with the name of his bank, Aadhaar number and register his fingerprint on a biometric scanner to authenticate his transaction.
Read : Is BHIM Application secured for Digital Payment
Advantage of Using Aadhaar Pay Apps
- Aadhaar pay is very useful for merchant as well as customer, Using Aadhaar Pay transactions are made via Aadhaar so no extra charges are levied where as in debit or credit cards at POS machines MDR (Merchant Discount Rate ) applied to merchant and transaction charges levied up to 2.5% to customer.
- The cost of POS machine is more than Rs 5,000, a biometric scanner for Aadhaar Pay can be installed for Rs 2,000.
- Chances of phishing is almost nil as transactions require physical presence of the customer and biometric authentication.
- Customers don’t need to pay any annual charge for using Aadhaar Pay unlike debit or credit cards.
Disadvantage of Aadhaar Pay
The major disadvantage of using Aadhaar Pay Apps is that reversal of money is not possible once it made successful. There is no inter transfer fund facilities through this apps.
Aadhaar Pay may end the concept of eWallet in India as Aadhaar Pay is directly linked to account and no limitation on payment.
