IT Minister Ravi Shankar Prasad has said that more than 1.4 crore people have registered for the government’s recently launched BHIM app. The Bharat Interface for Money (BHIM) seeks to encourage people to utilize digital transactions using their mobile phone. Prasad also informed that the government has launched two new schemes that will motivate people to use the BHIM app. The two new schemes are Referral Bonus Scheme for individuals and a Cashback Scheme for merchants.
Also in the pipeline is Aadhar Pay, which is the merchant version of Aadhar Enabled Payment System. This has been designed for people who may not have debit cards, mobile wallets and mobile phones. It would be very useful, since transacting through mobile wallets is still quite cumbersome in comparison to cash payments. The rural population is expected to greatly benefit from Aadhar Pay. People can just swipe their fingerprint to make payments using Aadhar Pay. Digital transactions are a challenge in rural areas, but Aadhar Pay is expected to create a revolution in how people transact in rural areas.
Some experts have pointed out to the security risks associated with fingerprint based payment system. However, the government has assured that since the location of the merchant will be clearly known, the possibility of fraud is very rare.