The Aadhaar Enabled Payment System (AePS) is a payment solution that leverages the Aadhaar infrastructure for transactions. Through the use of their Aadhaar number and biometric verification, people can conveniently utilise banking services, like cash withdrawals, checking balances, transferring funds, and more. This article provides insight into the Aadhaar-enabled Payment System, highlighting its characteristics, benefits, practical applications, and role in promoting inclusion and digital transactions in India.
What is AePS?
The Aadhaar-enabled payment system (AePS) is a service developed by the National Payments Corporation of India. It allows users to conduct transactions at an ATM by providing their Aadhaar number and biometric details. Here are some critical aspects of AePS;
1. Aadhaar linked transactions—AePS enables Aadhaar cardholders to carry out transactions using their linked bank accounts to make debit/credit card transactions.
2. Authentication – To complete transactions, users must provide their Aadhaar number and biometric data (iris or fingerprint scan) for authentication at Points of Sale (PoS) or micro ATMs.
3. Bank account privacy – Users are not required to reveal their bank account information during transactions, which enhances privacy and security.
4. Fund transfers – AePS allows users to transfer funds between bank accounts, providing a way to send and receive money.
5. Transactions – AePS transactions are considered secure as they involve authentication processes to verify the user’s identity.
By leveraging the Aadhaar infrastructure, AePS ensures that transactions are accessible to a range of individuals, especially those with limited access to traditional banking services.
Benefits of AePS or Aadhaar Enabled Payment System
The Aadhaar-enabled payment system, known as AePS, offers advantages to people from all walks of life.
Easy to Use—It has been designed to be easy to use, allowing individuals to understand and use it effectively for their transactions.
Secure & Reliable- To ensure security and reliability, the system requires users to provide data like fingerprints or iris scans and their Aadhaar card numbers for authentication purposes.
Access to Banking Services – AePS also serves the underprivileged by giving them access to banking services and enabling transactions.
Privacy & Security – Users can make transactions without disclosing their bank details, which enhances privacy and security. With AePS, individuals can easily access their bank accounts through Aadhaar authentication without visiting a bank branch. The system prioritises safety by adding a layer of security through data and Aadhaar numbers, guaranteeing levels of trustworthiness and security in transactions.
Expanding services to areas AePS enables the setup of small Point of Service (PoS[AG1] ) [AG2] in remote villages and regions, making transactions more accessible for people in underserved communities. After finishing the enrollment process for the Aadhaar Enabled Payment System, also called AePS Payment Merchant Registration, you must have a device at the centre to conduct transactions. Religare Digital provides training and marketing to help agents expand their businesses.
New section[AG3] – M-adhaar and Its Uses
The mAadhaar goes beyond being a card, in your wallet. It serves as a form of identification and users can also utilise the app features to share their eKYC or QR code with service providers who require Aadhaar verification, for offering services to customers.
){kind=link}