Both Apps uses Unified Payments Interface (UPI) technology to transfer money between any two individuals and between an individual and a merchant.

Navneet Dubey Moneycontrol News

Are you considering using one of the mobile payment apps launched by the government recently? If so, you may be confused on whether you should use the Aadhaar Payment App or Bharat Interface for Money (BHIM)?

Well, there are specific features of each of these apps which differentiate them which you should be aware of.

To start with, the Aadhaar app allows to make your payments through a thumb impression while BHIM through its ‘virtual address’ facility make it possible to transfer payments from one individual to another without disclosing one’s account number on either side.

However, in both the cases, payments can be done from any bank account to any merchant or an individual who have registered their bank account with their Aadhaar number and have also registered themselves with the apps respectively.

We list out the features of each of these apps, how they work and what significance they carry while making the payment from one source to another.

What is Aadhaar Pay App?

This digital payment application is made for merchants to accept payments from a customer using their Aadhaar number. Merchants need to download the app from their app stores and connect their smartphones to the biometric scanning device to accept payments from customers. The customer will then be able to make digital payments even if they don’t have a smartphone, a debit card or credit card.

On the merchants’ side, to use the app they are required to register their bank accounts and their own details on the Aadhaar payments app before receiving any money. Once the e-KYC process is validated, they can use the app to carry out the transaction.

Customers, on the other hand, need to have Aadhaar-linked bank account to process their payment successfully. If in case the Aadhaar number is not registered with the bank account you will not be able to make payment through this application.

Features of the BHIM App

Through BHIM, you can directly make payments from one bank account to another using unified payments interface (UPI). The payments can be made from one individual to another using virtual address assigned to the respective bank.

You can also send money through IFSC and MMID Code to other individual, users who do not even have a UPI-linked bank account or do not carry a smartphone with them. To send or to request for money, you can simply login to your BHIM app through mPIN and then type in the mobile number or virtual payment address (VPA) address to make the transfer of payments easily. This way you do not have to remember or re-enter anyone’s account number while doing any number of transactions within the same account.

BHIM app is integrated with UPI mechanism via USSD code which helps in facilitating financial transactions even in offline mode through your phone, even if it not a smartphone. So, BHIM app also makes it possible to do transaction even if you do not have an internet facility. The app also allows you to make the transfer of payments using QR code for a fixed amount of money, which the merchant or an individual can scan and further make the transaction successful.

Key Highlights

  • –Payments can be done to and from multiple bank accounts using these apps

  • –BHIM App uses 4 modes to make payment facility – VPA, QR code, IFSC and MMID code

  • –Both Apps uses UPI technology to transfer money between any two individuals

  • –The apps are available on all the digital app-stores offered by various operating systems

  • –Both apps are highly secured and uses mPIN password facility

  • –Both customers and merchants must have Aadhaar-linked bank account