AePS full form is Aadhaar Enabled Payment Service, developed by National Payments Corporation of India (NPCI) aims to facilitate financial transaction using Aadhaar number. Aadhaar number is an extensively used instrument of identification in India and introduction of a digital payment system using the same is intended to have better reach in tier-3 & 4 cities.

Although presence of an ATM is indisputably prominent in Tier 1 cities, the distribution of ATMs within the rest of the country is uneven. Deccan Herald (Feb 23) reported metro cities in India have 53 ATMs per 1 Lakh population while rural areas have meagre 9 ATMs per 1 Lakh population. According to the World Bank statistics, rural population account to nearly 65% of total population of India. It is quite apparent that a majority of the country’s vast population finds it challenging to access ATMs.

While installation and maintenance of a fully operational ATM poses several logistical challenges when serving rural India. Micro-ATMs are a low-cost, flexible alternatives for ATMs. They have gained much traction with ease of use, reduced logistical challenges, and increased potential for market penetration. AePS platform offers Business Correspondents or merchants (Retail outlets, Kirana stores, etc.) to provide basic banking services to their customers.

Aadhaar enabled Payment Service enables Business Correspondents or merchants to offer the following services to their customers.

In addition to the remote location banking service access that includes money transfer to remote location, balance enquiry in remote locations, cash withdrawal through business correspondent, cash deposit through business correspondent Micro ATM, the AePS facility can also be used for the following banking requirements.

Aadhaar enabled Payment Service (AePS) functions with very minimum requirements. A business correspondent or merchant only needs two things to offer AePS services to their customers.

1. Micro ATM
2. Biometric device

The customer only needs to know the Aadhaar number to access banking services. An Aadhaar card linked with the Bank Account is the only requirement to access all AePS features.

The remote location banking facility can be accessed at a Retail outlet/Kirana store or with a Business Correspondent who offers AePS services.

Pay10’s Agent Assisted Payment system is secured with Aadhaar masking and captures IP & location eliminating the risk of unauthorized access to the customer’s account.

According to Press Information Bureau, by the end of January 2023, cumulatively, 1,629.98 crore of last mile banking transactions have been made possible through AePS and the network of micro-ATMs in India. We at Pay10 envision an inclusive future as we collectively head towards a cashless economy fueled by digital advancements.

Pay10 offers innovative FinTech services that are designed to address the challenges faced by the rural demographic in India. You can also take a look at our ultra-efficient Payment Gateway with top-of-the-line security features, supporting several payment modes, and powers an analytical dashboard; Payment Links, Billing service, Reseller services, Payout services, and more.