BHIM (Bharat Interface for Money) app, has been integrated with UID for making payments using Aadhar number. This means BHIM app users will now be able to send and receive using their 12-digit Aadhaar number. The Unified Payments Interface (UPI)-based app will get biometric-based Aadhaar Pay option as well, but that feature is yet to roll out. It is expected to launch in the coming weeks.
Apart from Aadhaar-based payment option, users can pay using Mobile/Payment Address and Account +IFSC. Currently, the government has 14 banks on-board to facilitate payments via Aadhaar Pay, with more to join soon.
According to Unique Identification Authority of India (UIDAI), over 92 per cent of India’s adult population (above 18 years) already has an Aadhaar card, and reports says over 390 million bank accounts are linked to this number. With the launch of biometric-based Aadhaar Pay, payments via BHIM app will become simpler as it will only require verifying biometrics, which are linked with Aadhaar.
In order to make payments via Aadhaar, a user needs to tap on Send money, then on the three dots at the top of the menu. Options for Aadhaar Pay and Accounts + IFSC should open up. Tap on Aadhaar as the option, type in the number, then if it is linked to a bank account, you should be able to transfer the required amount.
As of now, two PINs are required for a successful BHIM transaction. One is the app PIN, which is stored locally on the phone and is required every time a person starts BHIM. The other is the UPI PIN with which you set up an UPI account or a VPA, and is required only when a transaction is taking place or you request to see your account balance on the BHIM app. To complete Aadhaar-based transactions, you will also need this UPI PIN.
Prime Minister Narendra Modi announced the digital payments app BHIM from National Payments Corporation of India (NPCI) on December 30 last year. The digital payments app topped Google Play Store’s free apps chart in just three days. Within a month, it was downloaded more than 5 million times on Android.
Aadhaar Pay option was anticipated since the app was launched. BHIM is different from mobile wallets such as Paytm and MobiKwik as it also allows sending money to people who don’t have the app. The UPI integration via USSD payments can work on feature phones and offline as well.