BHIM Aadhaar Pay app launched: Here's how it works

PM Modi launches the BHIM-Aadhaar Pay app. It allows making payments using Aadhaar card and fingerprints. 

Launched in Nagpur, the BHIM Aadhaar Pay app will allow users to make biometric-based payments using fingerprints. The announcement comes on the occasion of the birth anniversary of Dr Bhim Rao Ambedkar also known as the father of Indian constitution.

How it works

Aadhaar Pay or BHIM Aadhaar app is for merchants and will benefit consumers who do not have debit/credit cards. Basically, only merchants will have to download and install the app, and users will require an Aadhaar-linked banking account. It uses two platforms developed by the government Aadhaar Enabled Payment System (for authentication) (AEPS) and (APB) Aadhaar Payment Bridge (as repository). If multiple accounts are linked to a user’s Aadhaar card, then it offers an option to select a particular account.

Merchants need to validate the app by logging in with their Aadhaar details and fingerprints. Using the platform, merchants can take online payments from a customer's bank account using the 12-digit unique Aadhaar number. With this, merchants don't have to pay Merchant Discount Rate MDR, which is a charge paid to banks for accepting debit/credit card payments.