“AEPS is a bank-led model which allows online interoperable financial transaction at PoS (Point of Sale / Micro ATM) through the Business Correspondent (BC)/Bank Mitra of any bank using the Aadhaar authentication”, according to National Payments Corporation of India to (NCPI).
So what exactly is AePS?
To understand in simple terms, AePS is a type of payment system developed by the NCPI which helps the common man to carry out financial transactions at a micro-ATM by just providing their Aadhaar number, followed by fingerprint/iris scan for verification.
It’s a one-click remedy, where a person can send money from their account to any account irrespective of the bank in which the receiver’s account is operated, this system does not require you to mention bank account to details to carry out the financial transactions.
With the help of this payment system, one can send funds from one bank account to another simply through their Aadhaar numbers.
There are different facilities one can avail from this system, some of them are :
- Cash Withdrawal
- Cash Deposit
- Balance Enquiry
- Aadhaar to Aadhaar Fund Transfer
- Mini Statement
How will this system benefit you as a merchant?
- Ease of use and easy to set-up
- Both banking and non-banking transactions can be performed
- There is no limitation to carry out transactions even if the bank accounts of the parties are different
- Long term business association
- Commissions on transactions
- Increased customer footfall
- Safe and secure
How can you use AePS as a retailer?
This is a hassle-free process. The AePS system works like a Point of Sale (POS) machine. Instead of a debit/credit card pin, the merchant simply has to key in the customer’s Aadhaar number and authenticate the transaction using the customer’s biometric data.
Things you will need to carry out an AEPS transaction:
- Bank’s Issuer Identification Number (IIN) or name
- Aadhaar Number
Companies such as Pay1 can help set up this system for you. With the one-stop-solution, “the Pay1 Merchant App”, retailers can convert their shop into a mini ATM. Pay1 being a technology start-up provides digital, financial, and business solutions to the unorganized retail sector of India. In this time of social distancing, Pay1 retailers are able to help customers with their immediate banking needs without having travel long distances even in remote locations.