A Complete Guide- Everything You Should Know About AEPS

Spread the love

Aadhaar, the greatest biometric-based system on the planet has developed monstrously in India in the last couple of years and has been discussed generally for its utilization and facilities. Aadhaar which began with validation in India has now brought a great deal into its overlap like Authentication, paperless systems, Payments, Service conveyance, and so forth. It presently claims to be the greatest interoperable system on the planet and is helping India Stack design to help its numerous layers. AEPS advances cashless exchanges with the help of biometric checks.


What is AEPS?

Aadhaar Enabled Payment System (AEPS) is an Indian payment system that permits online interoperable monetary exchange at Micro ATM/Point of Sale (PoS) terminal through the Business Correspondent (BC) of any bank utilizing the Aadhaar verification. AEPS services can be easily provided by any person having AEPS API. Softcare Infotech is one of the best AEPS service providers in India.

Why Aadhaar Enabled payment systems Needed?

Aadhaar Enabled Payment System services of payments are being advanced by the legislature explicitly for the under advantaged segments of the general public and the rural helpless who are not open to utilizing cards or versatile wallets for payments. Instead of a smartphone or a plastic card, in these types of payments, the method of confirmation turns into the Aadhaar number and biometrics.

How AEPS work?

Aadhaar Enabled Payment System (AEPS) is a bank driven model, which permits online monetary incorporation exchange at Micro-ATM through the Business reporter of any bank utilizing the Aadhaar validation. This system is intended to deal with both ON-US and OFF-US demands flawlessly in a viable manner by empowering confirmation passage for all Aadhaar connected record holders.

Advantages of AEPS

There are various advantages of the Aadhaar Enabled Payment System. Some of these are as mentioned below:

  • Banking and non-banking exchanges can be performed through a banking journalist.
  • Utilizing AEPS, bank account holders will be in a situation to get to their accounts in banks through Aadhaar confirmation
  • Individuals don’t need to outfit their charge/Visa for making exchanges through AEPS.
  • Lifts the money related incorporation and helps the oppressed fragment of the general public
  • The unique mark is required for exchange verification which makes it more secure.
  • Interoperable across numerous banks
  • Small scale POS machines can be taken to inaccessible spots empowering individuals in remote towns to make exchanges right away.
  • The safe, secured and ensured technique for payment
  • AEPS is very easy to use
  • Banking journalists of one bank can perform exchanges of different banks also.
  • AEPS facilitates the payments of numerous Government plans like NREGA, Pension, Handicapped, Old Age, Social Security annuity, and so on of Central or State Government bodies by the method of Aadhaar verification

Why Aadhaar Enabled Payment System is considered Safe and Secure?

The most compelling motivation behind the accomplishment of Aadhaar enabled payment system (AEPS) is its security feature. This is the most secure system for all kinds of banking activity. This quality makes it the most solid system to use with no dread of losses.

As we probably are aware Aadhaar enabled payment system (AEPS) for people is basically a banking service provider by Aadhaar number. The Indian government connects all the bank accounts to a person’s Aadhaar number. Presently on the off chance that anybody needs to do any monetary activity through Aadhaar enabled payment system administration needs to go to any shop and utilize his Aadhaar number and his thumb impression which is one of the most unique things in the world, which makes this administration extremely safe and secured.

Along with this, there are numerous security highlights of Aadhaar enabled payment system which are following- 

  • It has signed in and logs out system
  • Individual enrollment system, everybody needs to enlist to utilize this administration implies everybody has their identification ID
  • 3D code check and OTP system joining
  • Maintenance of MAC and IP based security
  • Integration Captcha in aadhaar enabled payment application

Secure payment door by coordinating API service provider

Why AEPS Will Work Majorly In Rural India? 

Everyone is discussing AEPS and its feasibility in India; it has different advantages like diminishing weight on banks and acquires effectiveness and straightforwardness in the payment system. Some of the major advantages include:

Serves unskilled as well – The greatest preferred usage of the system is that it counters the issue of absence of education in India since ignorant individuals couldn’t utilize the charge card and recollect PIN number, however, now they can execute utilizing their Biometrics, similar to finger impression and might be in future with their iris.

Lower MDR – AEPS shipper payments expect to cut down the MDR so more individuals begin leaning toward electronic payments and even traders would grasp it.

Fast Pay or Accept Payments – Accept and make payments with least information subtleties like;

  • Aadhaar Number
  • Bank IIN or Name
  • Fingerprint

Minimal effort of administration – Cost of serving per client has gone down, as AEPS is a framework light model and doesn’t require massive EDC machines and henceforth maintaining a strategic distance from the colossal fixed expense.

Verifies Aadhaar Infrastructure – Aadhaar PKI based engineering is verified about, and its consistently developing security gauges guarantees the banking and client data are verified and subtleties are saved inside the system.

Decreases ATM cost for banks– It assists with cutting down the ATM cost for the bank because those exchanges can be effortlessly finished by a BC for clients at a much lower cost than an ATM

Security – Your bank subtleties are saved because you don’t need to share your bank account number, IFSC code and other delicate information with the vendor

Compact – The biometric machine is convenient and can be conveyed effectively; it is effortlessly connected to any PC or a Mobile device to make payments. This will assist with encouraging initial step administration by Business Correspondents (BCs) and other Online and Offline Merchants.

Ensures about Biometric devices – The biometric devices are STQC confirmed and should be Level 0 and 1 consistent, according to enrolled device guidelines and all device manufacturers must stick to it.


AEPS services are one of the best banking services in all aspects. If we talk in terms of business then providing banking services to the individuals helps a lot. It is beneficial for the people who are working as they can’t take leaves for completing their bank related works. It is also beneficial for the old and uneducated people as it does not require standing and waiting in long queues for completing their transactions. And it does not include any pen and paper work.

Looking to set up your own business in this field? Contact Softcare Infotech! We are one of the leading AEPS service providers in India providing AEPS API and AEPS portal to our customers at a very reasonable and affordable cost. Our AEPS portal allows you to set up your own AEPS business anywhere in India and serve the people with banking services. We also provide AEPS live demo to our clients.

One Reply to “A Complete Guide- Everything You Should Know About AEPS”

Leave a Reply

Your email address will not be published. Required fields are marked *