All about AePS (Aadhaar Enabled Payment System, AePS)

The Aadhaar Enabled Payment System, or AEPS for short, is a program that allows people to make digital payments for goods and services with their Aadhaar numbers. So far, it’s been up and running in India for almost a decade. It has been able to reduce the use of cash by 125 billion pieces and save time, money, and energy.

To use the Aadhaar Enabled Payment System to make a payment, you must have an electronic device (i.e. a mobile phone) connected to the internet. You then enter your 12-digit Aadhaar number and send some money to anyone with a UID (i.e. an Aadhaar number). The AEPS services can be availed through micro ATMS/POS. The process takes less than a minute, and the amount is transferred almost instantly over the Unique Identification Authority of India’s Unified Payment Interface (UPI).

What do all customers require to use AEPs services?

The only requirement needed for AEPs is to have an Aadhaar card linked to your bank account. If you have submitted your Aadhaar card and bank account number, you are ready to use the services. 

However, one must also note that the fingerprint provided at the time of issue of Aadhar Card should also match with other credentials to use AEPS services. 

AEPS is an Aadhaar Enabled Payment System program in India. In this system, customers can make payments electronically using their Aadhaar number and biometric information.

What is the significance of employing an Aadhaar Enabled Payment System?

Easy to use- Customers can make payments using their Aadhaar number, biometric information, and Aadhaar Enabled Payment Service authentication.

Secure- to use the AEPs; the customer must provide a one-time password (OTP) sent on their mobile phone linked to the bank account. This ensures that no unauthorized person has access to the account.

Instant transactions- By using this system, you can make cashless payments for goods and services digitally with your mobile phone instantly. You can pay through your Mobile phone using AEPs. A person does need a bank account or credit/debit card for this service.

It is hassle-free for all users- if you do not have a permanent account number, your biometric data can be used for verification. This also protects customers from being defrauded. Moreover, AEPS is one of the most progressive and rational moves for strengthening financial inclusion and facilitating finance management. 

Proper monitoring of expenses is not just about making payments but also allows customers to keep tabs on their costs.

Services provided by AEPS

1. Cash deposits and cash withdrawals- The Aadhaar Enabled Payment System allows customers to deposit or withdraw money through an Aadhaar number. This is useful for a customer who does not have a Permanent Account Number. The customer has access to all the services offered by the bank and can even receive interest on their deposits.

2. To enquire about balance- The account holder can use the services to check their balance. This is useful for checking the status of savings before making any payments.

3. Financial transactions- Customers can avail of the services to carry out financial transactions with the help of AEPS. This is useful for those who have bank accounts but do not want to keep the money. If a customer has a linked Aadhaar card, they can easily send money or perform a financial transaction from anywhere at any time.

4. Transfer of funds (Aadhaar to Aadhaar)– According to the Aadhaar Act, the individual can request to transfer money from one account to another linked Aadhaar card. This is useful when you do not want to keep your savings with the bank. You can deposit or withdraw it at any branch of the bank.

Aadhaar Payment – A Growing Trend

While UPI has taken the centre stage with its simple and easy-to-use interface, AePS, its predecessor has gained steady traction over the past 12 months. Data from the national payment corporation of India reveals that the value of Aadhaar enabled payment system transactions has doubled in January 2021 compared to last year. The number has propelled to Rs 21,978.51 crore. The approved transaction number has also increased by 47 percent in 2021. In this post, let us take a look at what AePS is and how it has become a growing trend alongside UPI.

What is AEPS?

The Aadhaar enabled payment system or AePS payment allows the consumer to make transactions using their unique Aadhaar identification number and Aadhaar verification at point of sale or micro ATM. The AEPS is an initiative launched by the NPCI to promote financial inclusion.

Services available on AEPS

A consumer can perform the following function using the Aadhaar number that is linked to a bank account

  • Cash deposit
  • Cash withdrawal
  • Balance inquiry
  • Obtain mini statement
  • Aadhaar to Aadhaar fund transfer

How to use AePS?

You can use the Aadhaar enabled payment system by following a few simple steps:

  • Visit a nearby micro ATM or AEPS service provider
  • Give your unique Aadhaar identification number and your bank account number that is linked to Aadhaar
  • Choose the service that you want to carry
  • If you have chosen a payment transaction, confirm it by offering verification through the biometric scan of fingerprint or iris
  • Once the transaction is complete, you can collect the receipt as proof.

Advantages of Aadhaar enabled payment system

The primary focus of AEPS banking is to promote financial inclusion and providing banking services in the rural areas of the country using the Aadhaar number. AEPS provides abundant benefits to people of all sections

  • Simple and easy to operate
  • Safe and secure transaction
  • Supports interoperability across different banks
  • It promotes inclusivity by paving a way for people from underprivileged parts of society.
  • Using AEPS, the account holder can gain access to their bank accounts just with the Aadhaar ID number.
  • With AEPS, the candidate only requires an Aadhaar number and their biometric to perform any transaction.
  • The Aadhaar payment system allows easy disbursement of various government schemes like the Social Security pension, NREGA Handicapped Old Age Pension, etc.
  • Investment in processing AEPS – POS / Micro ATM is significantly lower than the normal ATM.

The reason for the popularity 

Top players in the market say that AEPS has resurfaced significantly in the rural areas during the pandemic. The growth is a reflection of funds released by the governments to support the citizens in uncertain times. In rural areas, 61 percent and in urban areas 60 percent transaction value growth was seen. A recent NPCI report has revealed that AEPS can also be improved further for authentication-safe transactions.

FinAEPS

FinAEPS is online-based immediate Aadhaar payment software that connects the AePS interface of the NPCI and CBS. It also Supports Aadhaar based transactions. It acts as a bank’s financial transaction switch, connected to the core banking system. The FinAEPS can be used in various ways

• Micro ATMs

• Tablets 

• POS Machines

• Agent Banking through Micro-ATMs or Tablets

Bottom line

AEPS is back on track due to its less technical method. It is time for you to grab your AEPS model from Finacus, the best provider of digital platform solutions.

What are the Benefits of Using AEPS Services as a Service Provider?

The Aadhaar enabled payments system is a type of payment system launched by the national payments corporation of India. The system is based on the unique identification number that is the Aadhaar number to make seamless transactions. The Aadhaar holders can conduct various types of financial transactions through the system. The Aadhaar enabled payment system was launched with a motto to connect all sections of society. As almost everyone in the country has Aadhaar, the system allows anyone to perform a financial transaction. Through AEPS you can transfer funds, make payments, deposit cash, withdraw cash, perform a balance enquiry. AEPS not only benefits the customer but also benefits the service provider. In this post let us see how it benefits the service provider.

How does AEPS work?

Before seeing how AEPS benefits a service provider, let us understand how the system works.

  • First, you should visit the nearby micro-ATM or a banking correspondent who provides AEPS service.
  • Now, give your Aadhaar number and the bank name that is linked to your Aadhaar number.
  • Once the service provider enters the Aadhaar number, choose the type of transaction that you want to perform.
  • Authenticate the transaction by verifying fingerprint or an iris scan.
  • The transaction will complete within no time and you can collect your receipt.

Benefits as a service provider

You can be a service provider and set up a micro ATM and provide the benefits of AEPS for customers. You can enjoy the following benefits as a service provider

  • If you are a shop owner, you can set up a mini banking service and offer AEPS service to the customers
  • You can offer various transaction facilities to the customer
  • You can attract a lot of customers by offering a single solution platform under one roof.
  • For every transaction you do via Aadhaar enabled payment system, you will earn commission
  • You customers can enjoy complete banking solutions nearby their homes.
  • The commission you earn will differ based on the type of transaction done.
  • On average, for every transaction done by the customer from your service, you will get a commission of 1.25 percent.

How to get the AEPS system

If you are an eligible candidate, you can get the AEPS service for your shop. If you are going to any financial firm there are some criteria for registration like you should be an Indian citizen, have full-time, part-time or work from home jobs. Also, you should have access to the internet and computers. You then have to provide some ID such as Pan Card and Aadhaar card along with a passport size photo. You can register and get the AEPS system for your shop or service providing centre.

FinAEPS

The FinAEPS is an online immediate Aadhaar based software that connects the AePS interface of a National payment corporation and supports Aadhaar based transactions. It is hosted as a switch of the bank’s financial transaction and connected to the core banking system. The FinAEPS can be used in a multitude of ways

• Regular ATMs

• Business Correspondent Model

• Agent Banking through Micro-ATMs or Tablets

Bottom line

The Aadhaar enabled payment system is one of India’s top payment solutions. Get AEPS service from the best financial solution provider Finacus. Call now for information and a demo from our executives.

AEPS – A Simple, Secure, and User friendly Mode of Payment Solution

The Aadhar enabled payments system or the AEPS is developed by the umbrella of the digital transaction- the National payments corporation of India. It is a system of payment that allows the customer to perform various transactions with Aadhar as the base for verification. AEPS is driven by the unique identification number or the Aadhar number for an effort transaction. The AEPS system works cordially with the banks and is aimed at empowering all sections of the society. The Aadhar enabled payments system makes easy transactions to all people of the society. Let us see how AEPS has become one of the most sought-after and user-friendly platforms for digital transactions.

Aadhar enabled payments system

About AEPS

The Aadhaar enabled payment system allows the customers to make payments and transactions using their Aadhaar number and Aadhaar verification at point of sale or micro ATM. It is an initiative taken by the national payment corporation of India to instill cashless transactions. AEPS makes financial transactions a cakewalk.

How can you use AEPS?

Step 1: Visit a micro ATM that is nearby or a banking correspondent

Step 2: Provide your Aadhar number and the bank account number that is linked to Aadhar.

Step 3: Among the various options provided, choose the type of transaction that you want to perform

Step 4: Confirm the payment by providing verification through a fingerprint scan and iris scan.

Step 5: Collect your receipt for the transaction that you have made.

Services provided by AEPS

  • Cash Deposit
  • Payment Transactions (C2B, C2G Transactions)
  • Balance Enquiry
  • Cash Withdrawal
  • Aadhaar to Aadhaar funds transfer
  • Obtain mini statement

What do you need for AEPS?

The Aadhar enabled payment system doesn’t require any documents but it is mandated that you have to link your Aadhar to the bank account. The following are the main requirements that are required for a successful AEPS transaction.

  • Aadhaar Number
  • Bio-metrics –Fingerprint
  • Name or Bank IIN or Issuer Identification Number
  • Micro ATM
  • Assisted mode

Charges for AEPS

The customers need not pay any fee to avail of this service. The merchant or the bank correspondent might be charged based on the decision of the bank. The cost of the transaction will be divided into various sections:

  • UIDAI charge a very less fee
  • NPCI charge 15 paise to 25 paise for settlement of the transaction
  • Banks may charge till 1% of the particular transaction with the minimum charges being INR 5 and the maximum is INR 15

Benefits of AEPS

The main aim of AEPS banking is to lay a strong foundation across the country for cashless transactions. The AEPS offers various banking benefits to people from all sections of society.

  • Very easy to use and handle
  • The method of payment is safe and protected
  • It offers interoperability across various banks
  • It boosts financial inclusion and helps people who belong to the underprivileged part of the society
  • Using AEPS, the account holders in a bank can access their bank accounts just with the Aadhar authentication.
  • With AEPS the only prerequisite that is needed to initiate a transaction is the Aadhar number and biometric information of the respective candidate.
  • This system eases the payment of various government schemes such as the Social Security Pension, NREGA Handicapped Old Age Pension, etc.

Bottom line

For seamless transactions, you can visit the best AEPS service provider in your area. The Aadhar enabled payment system will make all your transactions a jiffy process.