Indian Prime Minister Shri Narendra Modi today launched the BHIM Aadhaar Pay app to promote digital transactions. This will enable people without any debit/credit card or smartphone to go cashless. Just having a valid Aadhaar card/number and your fingerprint will be enough to make a payment. To accept payments, a merchant only needs to install the Aadhar Pay app on his/her smartphone.
BHIM Aadhaar Pay is Totally Free to Use
To promote digital transactions, the government / NPCI will not levy any charges whatsoever for both buyers as well merchants. In essence, it is much cheaper to use compared to debit and credit cards.
This will be an incentive for merchants to use Aadhaar Pay instead of Debit and Credit cards which usually charge anything from 0.5 to 2.25 in the form of transaction charges. This is also good for customers who usually have to bear the charge directly or indirectly.
BHIM Aadhaar Pay Referral and Cashback Offers
To promote Aadhaar Pay, the government has announced a referral scheme. Both, the referrer and the referred user will get a cash bonus which will be directly credited to their bank accounts. Apart from this, there is also a cashback offer.
Under this, the merchants will get a cashback on every transaction using BHIM. The government has prepared an outlay of Rs. 495 crore for the scheme which will run till October 14.
Requirements to use Aadhaar Pay
The consumers can use the app just like any mobile wallet. To make use of the service, a consumer has to link his/her bank account with his/her Aadhaar card. After a successful attachment, an individual can make cashless transactions just with his/her Aadhaar card number and their fingerprint. The merchant app requires two things to work, one a fingerprint scanner and the other is an Android smartphone. The bio-metric scanners will authenticate a user to enable the transaction.