The future depends on how we plan the present.If the planning and decisions are right, the future is definitely good.
...A renowned Economist.
Mobile Money – has become the need for every body, it is not a luxury. With so much of mobility both physically and otherwise, the need to carry large/small sum of cash is always inconvenient. It is therefore necessary to start using your mobile phone as your wallet, for various types of transactions that we all do, on the word go. With government push and necessary support , it is time for one and all to start using Mobile Money.
Many of us have already started using it, so why not you?
Variuos avalable options have been outlined herein under for the user to take note of and become a part of mobile movement.
Mobile payment i.e. using your Mobile phone for various types of payments are possible. Infact it is being encouraged and number of
mobile apps are today available for this purpose. Another significant feature available is that the moble payments can be done even with an old model
phone. it is not mandatory to have a Smart phone for using a mobile app for making payments. Apps are available where even with old model
phones one can make such payments.
The apps for making payments are UPI, BHIM , USSD , AEPS - Aadhar Enabled Payment System,
e-wallet, Paytm etc.
Let us see how these apps work:
UPI (Unified Payments Interface):
UPI is a payments system - just like a cheque, credit/ debit card or a mobile wallet.
The UPI app is interoperable between banks i.e. irresepective of the bank the users (Money Giver and the Money receiver) use the transactions can
be done. So, it doesn't matter if the money giver and the money receiver have account with ICICI Bank and Axis Bank or any other bank, the money
can still be transferred.
NPCI (National Payments Corporation of India), which is the same organisation that enables the ATMs to be
interoperable, allowing the user to use an Axis ATM card in an ICICI ATM, for example. The UPI has gone live with almost all the major banks.
UPI app enables the money will be debited from your bank account, and transferred to the recipients account instantly and securely.
UPI apps are based on the IMPS (Immediate Payment Service) system and it is available 24x7, even on Sundays and holidays.
Following is the working steps of UPI.
Steps to be taken to get started:
It is as easy as sending a message from your phone. Every bank has its own mobile app - so it is now possible to transact
on your smart phones.
BHIM-UPI (BHIM-Unified Payments Interface):
BHIM is a digital payments (solution) app based on the Unified Payments Interface (UPI) from the National Payments
Corporation of India (NPCI), the umbrella organisation for all retail payments systems in India.
To start using BHIM app , one has to register his Bank account (which should also linked to your Mobile No.), then
you’ll be able to use the BHIM app to carry out digital transactions.
BHIM will let you send and receive money to other UPI accounts or addresses. You can also send money via
IFSC (Indian Financial System Code) and MMID (Mobile Money Identifier) Code to users who don’t have a UPI-based bank account.
There’s also the option of creating your own QR (Quick Response) code for a fixed amount of money, which the merchant can scan to make the deduction.
QR Code looks like this:
How it works? Let us see the steps to be taken:
BHIM is UPI-based, and therefore linked directly to the bank account. The payee needs a bank account.
It is as easy as sending a message from your phone.The steps are:
USSD (Unstructured Supplementary Service Data)
USSD is a Global System for Mobile(GSM) communication technology that is used to send text between
a mobile phone and an application program in the network. Using USSD app, Mobile banking has brought the bank account in your hand.
Now, you can check bank balance, get a mini statement and do a payment through the mobile banking. All this is possible even if one does not have
a smart phone and the Internet(which is necessary for such applications.)
USSD based mobile banking app has all this possible. Just dial the *99# and see the magic.
You can do all those things which are available to a person with smartphone and 3G data.
Almost every bank including SBI, ICICI, HDFC, PNB, Axis etc. support *99# USSD Payment.
USSD app is so easy to use as checkig your prepaid balance with your phone, which may be
a normal(old model) phone.
The steps are:
AEPS - Aadhar Enabled Payment System
AEPS-Aadhaar Enabled Payment System is a way to get money from the bank account.
This system of getting money neither requires your signature nor Debit card. You don’t even need to visit a bank branch
for getting money through the Aadhaar Enabled Payment System. Rather, it uses Aadhaar data for the authentication. Like UPI and USSD,
this is another initiative by the NPCI.
The four Aadhaar enabled basic types of banking transactions are as follows:-
The only inputs required for a customer to do a transaction under this scenario are:-
How To Pay Using Aadhaar Card ?
AEPS (Aadhaar Enabled Payment System) in its basic form is a machine known as micro ATM. This machine is similar to POS(Point of Sale) machines that accept credit/debit cards. The only difference is that instead of any card you need to authenticate your payments using your bio metrics (usually fingerprint).
How does AEPS machine work?
A merchant who needs to accept payment will enter the aadhaar number and the amount in the machine using the touch interface provided.
The customer then needs to authenticate the payment using his/her fingerprint. The amount will be deducted from a bank account that is
linked to customers aadhaar number and credited to the merchants bank account.
Aadhaar Pay Merchant App
A merchant will have a smartphone with a finger print scanner connected to it via an application.
You will have to place your finger on that scanner to pay using aadhaar.
Your bank , which is already linked to your aadhaar number will be debited with the amount you pay to the shopkeeper.
Aadhaar Pay Merchant App – How it works?
UIDAI has introduced the much awaited Aadhaar Pay Merchant App. Using this aadhaar payment app, merchants can accept
payments which will be cashless, cardless and pinless.
To accept payments, merchants needs to register on the app using the aadhaar number. The registration needs to be authorised using the fingerprint of the merchant.
Now to accept any payment from the customer, the merchant needs to enter the customer details which include customer aadhar number, customer bank name, and amount to be paid by the customer.
An option to continue or to reject the payment will be provided. Once choosen to proceed, the payment needs to be authorised using the customer’s finger print.
After successful authentication, the amount will be transfered from the customer’s aadhaar linked bank account to merchant’s aadhaar linked bank account.
e-wallet allows you to store multiple credit card and bank account numbers in a secure environment, and eliminate the need
to enter in account information when making your payment.
Once you have registered and created E-Wallet profiles, you can make payments faster and with less typing.
How does E-Wallet work?
E-Wallet provides the ability to store multiple credit cards, debit cards and bank account information for making faster payments.
You can create up to ten separate profiles for both credit and debit cards, and up to ten separate profiles for checking and savings accounts.
You can edit and delete these profiles as needed. When making a payment after logging in to My Account, you will save time by having your credit
or bank account information filled in automatically.
Why use E-Wallet?
E-Wallet saves you time because you don't have to look for your credit card or bank account information every time you make a payment.
The payment information from your Primary account is conveniently pre-filled during the payment process, and you can quickly select
another payment account if you have more than one set up.
How do I set-up an E-Wallet profile?
You can set-up an E-Wallet profile by clicking the E-Wallet tab in the My Account Dashboard. Then click on the button to "Add Card"
for a credit or debit card, or "Add Account" for a checking or savings account. Next, a simple screen will appear to create any
"nickname" you wish, e.g. "My Visa Card" or "Ram's Checking Account", enter the details of the card or account, then click "Add".
Your profile will be saved in a secure environment and available when you make your next payment.
Paytm, is another digital payment instrument developed and being provided by the company for the people
to make small to medium amount of transcation. After setting up an account using his mobile phone number and email ID for Paytm account, transfer cash to the wallet. (In this, one has to transfer money from his bank account or credit card to use for transactions on the platform.) You can transfer/add up to Rs. 10,000 in a month in the Wallet;
The steps for using Paytm wallet are:
There are many more payment apps which can be used for these purposes.One can select/download the apps he wants to use.