Aadhaar Enabled payment System (AEPS) may prove to be a big push towards cashless transactions and digital economy. Aadhaar Enabled Payment System (AEPS) will allow any merchant to accept payments by using an app and a fingerprint scanner. The app for making aadhaar based transactions is being developed in collaboration with TCS.
UPDATE: Aadhaar Pay to debut with SBI and 5 other Banks
Economic TimesQuoted, a senior government official saying, “Aadhaar Pay will be introduced in the country first with five banks that includes the country’s largest public sector bank the State Bank of India (SBI). The other banks are Syndicate Bank, IndusInd Bank, and IDFC Bank. Bank of Baroda and Punjab National Bank are also in the process of launching it at the earliest.
Reason for the Delay and the deadline
Although the app was introduced in December last year but it’s still not available for download on any mobile app stores like Google Play. But now we know the reason for the delay and the deadline by which app should appear online.
Govt. has set a deadline of March 31, 2017 for the banks to launch this service. The main reason behind the delay in the launch is that detailed specifications on the point of sale machines were not available. “Now that guidelines are there and other security concerns have been taken care of, we expect more banks to join the system,” Economic Times quoted a govt. official saying that.
Merchants can download the application start accepting cashless, card-less and pin-less payments! They just need a smartphone, Aadhaar Enabled Payment System App and a fingerprint scanner. The application would be made available to all banks, who would encourage merchants in their vicinity to adopt this application.
Earlier GadgetsNow quoted Ajay Bhushan Pandey, CEO of the Unique Identification Authority of India (UIDAI) saying that they will start rolling out Aadhaar Pay or the AEPS app for the merchants in next few weeks. This system will allow merchants to use bio-metrics to receive payments. No cash or card is required.
A pilot program is already underway in Andhra Pradesh where fixed price shops are accepting payments using this system.
Cashless transactions using USSD code *99#
What if you don’t own a smartphone? What if you don’t have internet connection? These questions come to mind when thinking of cashless transactions. But now you can make cashless transactions even from your feature phone or when don’t have access to internet. This is possible with the help of USSD code *99#.
A report submitted to the Union Finance Ministry on Friday also recommended rolling out more user friendly version of USSD or *99# for making cashless payments and the Upgraded version of the code may roll out by December 25.
[Also Read] – How to Make USSD Payments (FULL GUIDE)
Aadhaar Enabled Payment System: Making Cashless Payments more attractive
In a meeting headed by Andhra Pradesh Chief Minister N. Chandrababu Naidu, held on Friday at NITI Aayog, following steps were identified to make cashless payments more attractive:
- KYC (Know your customer) process using Aadhaar card needs simplification.
- RBI should allow authentication through iris scanner and One Time Password (OTP) for AEPS and that there should be no charge on AEPS transactions.
- Inter-operability of all pre-paid instruments on the United Payments Interface(UPI) platform along with a common QR-Code would greatly simplify transactions.
- To popularise digital transactions and cashless payments, panel called for streamlining of MDR (Merchant Discount Rate).
- Interlinking Aadhaar Enabled Payment System (AEPS) with other kinds of digital payment services like USSD and UPI.
It seems like Aadhaar Enabled Payment System (AEPS) can become the future of cashless transactions in India. It can prove to be the most convenient form of cashless payment. Don’t forget to share your views regarding AEPS in the comments below!