One of the much waited cashless payment app is going to be officially launched by PM Modi himself. Yes, PM Modi will launch BHIM-Aadhaar on the eve of Ambedkar Jayanti i.e, on 14 April 2017. BHIM-Aadhaar is the merchant interface for the BHIM app.
BHIM-Aadhaar will enable merchants accept cashless payments from customers without need of cards or e-wallets. The payments will be authorised by customer’s bio-metrics like fingerprint. The transactions shall be cashless, card-less and pin-less!
The concept was introduced back in December 2016
Aadhaar Pay app was first introduced by Govt. of India through a video posted on Digital India Facebook Page on 25th December 2016. But the app never made it to any app store like Google Play. We received a lots of messages then about the availability of the app. The video was a demonstration of an idea rather than a working app.
But now as per authentic reports, the concept will be launched as an interface named BHIM-Aadhaar. The platform will be launched by PM Modi himself on the eve of Ambedkar Jayanti at a function in Nagpur. At this function, the winners of Lucky Grahak, Digi-Dhan Vyaapar Yojna will be also announced.
IDFC Aadhaar Pay already launched
Government of India in association with NPCI (National Payments Corporation of India) and various banks worked to make this app a reality. Soon, IDFC bank became the first bank to launch its Aadhaar Pay App. IDFC Aadhaar Pay like BHIM-Aadhaar, works on Aadhaar Enabled Payment System (AEPS). Even before the official launch of BHIM-Aadhaar Interface, 27 major banks are ready with 3 lakh merchants to start accepting payments using BHIM Aadhaar.
It is quite interesting to note that last year PM Modi also launched the BHIM app, a UPI based cashless payment app. Soon after its launch, people started downloading the app and it proved to be an instant hit. BHIM app was downloaded so many times that made to Google Play Top charts.
Why you may not be able to download BHIM-Aadhaar
Like BHIM app, which all of us downloaded immediately once it was released, the same won’t be the case with BHIM-Aadhaar. If you are one of those who want to download BHIM-Aadhaar, you may ask yourself, “Why you want to download it?”
There is no reason for you to download any such app unless you are a merchant who wants to accept aadhaar-enabled payments.
For merchants who need to accept payments need to contact their respective banks and see if they support BHIM-Aadhaar interface. If they will help you with the setup which includes a mobile app and a fingerprint scanner.
How this system works?
If you regularly follow thetechpert.com, then you may be knowing how aadhaar enabled payment system works. To recall, Aadhaar enabled payment system is a system of cashless payment where a customer pays for goods and services by authorising the payment using bio-metrics usually the fingerprint.
Many of you might have gone through the process of e-KYC while buying a new Reliance Jio sim card. The salesman or any store staff asks you to put your finger on bio-metric device connected to their smartphone and they retrieve your personal information as registered with UIDAI when you applied for Aadhaar card.
This system is almost similar. The merchant will have a fingerprint scanner connected to smartphone installed with an app that supports powered by BHIM-Aadhaar Interface. Here’s how the system would work:
- The customer purchases any goods/services.
- The merchants calculates the amount to be accepted and inputs the amount in the app.
- The bank name and the aadhaar number of the customer are entered into the app.
- Merchant asks the customer to authorise the payment by placing his/her finger on the bio-metric scanner connected to merchant’s smartphone.
- The amount is transferred from customers’ aadhaar-linked bank account to merchants’ aadhaar-linked bank account.
BHIM-Aadhaar can be seen as another big push towards cashless society. BHIM-Aadhaar is going to make digital payments less complicated and simple even for the people who can’t use cards or digital wallets due to lower education or illiteracy.
Can BHIM-Aadhaar become the future of digital payments in India? This would be too early to answer this question, but you can feel free to share your opinions in the comments section below.