What is Aadhar Payments? You can use it like this

Ever since the launch of UPI, speculations had started that we would see more such new experiments in the coming times. One of these is… Aadhaar Payments (AEPS). An official announcement has been made about it and it will be rolled out soon. With its help, users will be able to send and receive money on the basis of Aadhaar number and biometric information.

Last weekend IDFC Bank announced a cashless system based on Aadhaar number. The retailer’s phone is used for digital payments. It has been named Aadhaar Pay. It has been launched in partnership with NPCI, UIDAI and IDFS Bank. The new system has been rolled out to 100 shopkeepers in the last three days. In this, Aadhaar and UPI are used for payment.

Meanwhile, SBI has announced that it has adopted Shidki village of Pen taluka of Maharashtra for testing Aadhaar payments. The shopkeepers of this village have been provided with Android smartphones and fingerprint scanners, so that the cashless system can be promoted there.

What is Aadhar Payments?
As we have already told you that UPI is a big discovery in the field of banking. It uses your mobile to identify you and turns your mobile into a debit card so you can make payments anywhere.

In one sentence, through UPI you can instantly transfer money using the IMPS payment framework without knowing the account number or IFSC code. All you need to know is their virtual identity such as gopal@icici (for example), or 1234567890@axis (use your phone number instead of 1234567890).

Aadhaar is considered the supporting infrastructure of UPI. With the help of which Aadhaar payments are made. With its help, after verification of biometric information given in Aadhaar, payment will be possible from the accounts which are linked to Aadhaar. This means that in the coming days you will be faced with fingerprint readers instead of POS terminals.

Payment will be done like this
Right now the system of Aadhaar payments is in the initial stage. SBI has adopted a village in Maharashtra for Aadhaar payments and IDFC has provided this facility to 100 shopkeepers. This figure is so small that the chances of you encountering this system are extremely low.

As this system becomes more popular, you will need to… The first thing you need to do is have the Aadhaar card. After this Aadhaar will have to be linked to the bank account. If you have not already linked, go to the bank and share Aadhaar details. However, many people consider it a violation of privacy. But if you consider the shortcomings and advantages of this system, then you will want to be a part of it. After this you will not need anything else.

The shopkeeper should have Aadhaar payment arrangement. For this, bank account, Android smartphone and fingerprint scanner will be required. The merchant will have to install the Aadhaar payment app in his phone. It is not on Google Play yet, but it will be made available in the future. Currently, payment for this arrangement is being made by the banks. As it comes into practice, merchants will have to pay for it like POS machines.

To make payment in the store you just have to provide your Aadhaar number. After this your fingerprint will be scanned. Now you choose the bank linked to Aadhaar and then the payment will be done. You don’t need to install any app. No wallet is required nor should there be any special card nearby.

What will happen next…
Expect Aadhaar payments to become more popular. Especially in small towns and villages, where the possibility of using smartphones along with systems like wallet or UPI is very less.