Aadhar Pay: Prime Minister Narendra Modi launched BHIM Aadhar Pay in a recent event at Nagpur. The Government is constantly encouraging people by introducing different apps to implement cashless economy in the country. In the past year, the government has launched two apps, one was UPI Pay and the second was BHIM. Since the launch of BHIM app, it has gained more than 1.8 Crore downloads. The Government’s new app BHIM Aadhar provides vast benefits of Cashback and referral bonuses in order to enhance the cashless economy in the country.
What is the main purpose behind launching BHIM Aadhar?
All the citizens will adopt the digital platforms due to the demonetization and the other reason is, users can transfer the money in just a matter of seconds. With the effort of the Indian government, cash is returning back into the system. The government wants to introduce smart and easy ways to transfer money for all the citizens of India. As per the analysis, there are about 250 million smartphones in India, so the government wants to launch a platform where no citizen requires a smartphone to make transactions. Using BHIM Aadhar, it allows all the merchants to originate payments from users without the need of a smartphone.
How does the BHIM Aadhar work?
The app is mainly meant for the merchants. The Merchant have to first of all register their account on the app. After registration is complete, the merchant has to buy a fingerprint scanner, which will be connected to the smartphone. here, during purchase, the customer has to enter the Aadhar Number and then verify the Thumb Print. If a user possesses more than one account then the user has to select a proper account to complete the Transaction. At Present, there are total 40 crore users in India whose Aadhar Card is linked with their bank account.
How will this new service be beneficial to Customer as well as the Merchant?
The previous app, BHIM requires peer-to-peer transfer, in which the customer requires a smartphone or a USSD Service, this new service doesn’t need any device. A customer has to link his/her Aadhar Number with the Bank. If a Customer has already linked Aadhar Number with the bank, then he/she can walk into any store and enter the Aadhar Number and scan fingerprint and make payment. Here, the merchant has to purchase a smartphone and a Fingerprint scanner, the cost of which is low as compared to a swipe machine. With this service, the merchant will be able to transfer money directly to the bank.
Which Schemes are offered by Government under BHIM Aadhar?
The Government has launched two schemes
2. Referral Bonus
The Government is going to spend 450 Crore on the project for next six months.
In this Scheme, all the Merchants can receive a Cashback of Rs 300 per month for the next 6 months, which makes a total of Rs 1800. In order to gain this offer, the merchant has to do minimum 50 transactions which consist of 20 Unique transactions.
2. Referral Bonus
In this scheme, both the referrer and the referee will receive a bonus, under the condition that the new user does three transactions with a minimum amount of Rs 50. By doing this, the referral will receive Rs 10 per successful referral, while the new user will get Rs 25 for using the BHIM App.
Why use the BHIM Aadhar Pay?
The use of Aadhar Pay for merchants will remove the long waiting line to get a PoS(Point of Scale) machine at the bank. As per the current scenario, about 15 lakh PoS machines has been delivered to the merchants. While there are total 5 Crore merchants present in the country.
BHIM Aadhar Pay app will be available directly on the merchant’s smartphone. A customer has to select bank name, enter Aadhar Number and then Scan Fingerprint in order to perform a Successful transaction.
Customers no need to use any of the Credit as well as the debit card. Download an app or carry an app to perform the transaction. Due to this service, all the customers don’t need to remember any password, account number, setup virtual payment address and use a USSD code to transfer money.
The use of digital payments in India is very less amongst the country. The main reason behind this is India is a Cash Dominated Country and companies like Visa and MasterCard are charging 2-3% charges for making transactions.
This Service will not only be helpful for Merchants but also for the Customers. As all the customers don’t have to remember any passwords, carry cards and any risk of their digital account information to be leaked. Also, the customer doesn’t need to download the BHIM Aadhar Pay App.
BHIM AAdhar Pay App will be soon available in the Play Store as well as in the iOS Store.