After the huge success of BHIM app, PM Modi launched another payment app recently, BHIM-Aadhar pay.
The app is slightly different from the previous BHIM app. Through BHIM, you can make payments directly from one bank account to another through the UPI mechanism. This app is based on a virtual address assigned to each account. Payments can be made or received using this address.
However, BHIM-Aadhar pay is slightly different and is meant for merchants to accept payments from customers using their biometrics linked to their Aadhaar. Merchants can download this app for both Android and iOS. Once the KYC is done, the merchant can start accepting payments using a fingerprint. Though, a biometric scanning device is required to be connected to the smartphone.
Customers, on the other hand, can only make payments if their Aadhaar is linked to their bank account successfully. Else they will not be able to process payment through this application.
In the case of multiple bank accounts linked to your Aadhaar card, after verifying yourself using your thumb impression, you will be given an option to select the bank account you want to use to process the payment.
The app aims to seamless day to day transaction possible without any hassles by leveraging the power of biometrics. It helps speed up the payment process. But, merchants refrain from using it because biometric scanning devices cost quite a bit. However, the government is also offering incentives to those who use it. No extra charge is levied on the payment, unlike other payment modes like Cash cards or E-Wallets. MDR is also waived off.
The government is striving hard to promote this app and make it a success. As of now, the app has had a slow start with just 10,000 transactions happening each day through it.