AADHAAR ENABLED Payment Transactions have nearly doubled to Rs 2,047 crore in September from Rs 1,409 crore in July and Rs 793 crore in April. This surge is driven by cheaper devices that enable the Aadhaar-based payment system.
According to bankers, after struggling for three years, the Aadhaar Enabled Payment Services (AEPS) transactions are expected to rise further in the future, the Times of India reported.
“The device cost used to be Rs 14,700, now per device cost has come down on average to Rs 6,000-Rs 6,500. This has resulted in more banking correspondents (BCs) using these devices for transactions in rural areas,” said R Subramaniakumar, CEO, Indian Overseas Bank.
Aadhar Enabled Payment System(AEPS) is a way to make financial transactions from the bank account with the help of your biometric authentication. This system neither requires your signature nor Debit/credit card. Visiting a bank for getting money is not required through the AEPS. Rather, it uses Aadhar Card data for the authentication.
It’s another initiative by the NPCI (National Payments Corporation of India) like UPI and USSD.This is a new form of payment that is being promoted by the government to push for digital payments instead of cash transactions.
There are four basic services that can be availed through the AEPS – balance check, cash deposit, cash withdrawal and Aadhaar to Aadhaar fund transfer. It gives a lot of convenience to the rural people who are not very aware of facilities like mobile transactions.
Even, NITI Aayog has proposed greater usage of Aadhaar for digital transactions as it is cheaper. The cost of a credit card transactions can be as high as Rs 3.2-Rs 3.5, while debit card transactions can cost between Rs 1.8- Rs 2.4 per transaction.The cost of digital transactions could be reduced to almost zero if payments were made through Aadhaar Card, NITI Aayog CEO Amitabh Kant said earlier.