BHIM Payment APP: All you need to know

BHIM (Bharat interface for Money) app is a new peer to peer money transfer app built by NPCI( National payment corporation of India) a nodal agency to develop online payments infrastructure in India. The app was launched by Prime Minister Narendra Modi and is part of large scale initiatives by the government of India to push cashless transactions in India.

BHIM a mobile app on top of UPI

BHIM ( which is a name derived from one of the mythical characters known for his strength) is a mobile app built on top of UPI( unified payment interface) which was developed by NPCI.

 What is UPI

UPI is basically a set of services developed by NPCI  which provides a  secure way to enable payments using aliases and is interoperable across banks. Essentially what it means is you can convert your phone number into a payment alias and hence use your phone number to send and receive payments hence bypassing the tedious process of adding account number and IFSC codes etc prevalent currently.  Beloe diagram explains the architecture of UPI

Key Advantages of UPI

1. Your Smart phone will be converted into a bank. UPI provides necessary infrastructure on which most of the retail payment use cases can be built allowing for a seamless way for people to move money and use key banking features.
2. It will simplify payments and enable usage simple aliases like phone number and address to send and receive payments. Removing current cumbersome process of using accounts and IFSC codes to make payments
3. Will help using QR technology to enable merchants to receive payments directly in their accounts reducing the need of costly card infrastructure and sub-optimal wallets
4. UPI reduces cost of payments by reducing infrastructure as well as acquisition costs for new users
5. With two-factor authentications requirement on credit cards. A lot of simple use cases like recurring payments are not easy to get through in India. UPI will simplify that.

What are key functionalities available in BHIM App

1. Send Money to friends with a mobile  number or payment address
2. Receive money from everywhere with mobile number or payment address
3. For non-UPI supported banks, you can use IFSC and MMID to send and receiver money
4. Check your balance on the go on your account
5. Transfer money by scanning QR code of the merchant or the account you want to transfer money to
6. Money transfer is done instantaneously and can be done 24 hours a day
7. Maximum limit per transaction is Rs 10000 and you can do a maximum of Rs 20000 in 24 hours

Review of BHIM App

BHIM android app was launched last week as is know available on the Google play store. you can download the app from the below link

https://play.google.com/store/apps/details?id=in.org.npci.upiapp

Ther interface for BHIM App is quite simple and intuitive here is a st ep by step guide on how to enable BHIM app with your account.

1. Go to Googe pl ay store and install the APP, you will need to have Android phones and Android version 4.1 upwards are supported.
2. Once you have installed the app open the app.
3. First Screen is to choose your language currently there are two languages Hindi and English Supported
4. It will need access to SMS and your phone state, to make and manage phone calls
5. Next step is to verify your phone number if you have a dual sim chose the SIM you want to verify
6.  Next step is to register your passcode and confirm passcode
7. If your bank account is linked to your phone number it gets populated for your account
8. You can do 3 things with BHIM app

a) Send Money

b)  Request Money

c)  Scan and Pay

9. The alias that gets created is yourphonenumber@UPI10.You can set your UPI Pin by providing information for your debit card and validity date.

10.Security features like with most of the payments app in India does not seem to be the strongest part but I guess this will keep getting improved.

List of supported banks on BHIM

Currently, BHIM app is supported for select banks which are already registered with UPI. Here is the list of banks supported by BHIM app

-Allahabad Bank
– Andhra Bank
– Axis Bank
– Bank of Baroda
– Bank of Maharashtra
– Canara Bank
– Catholic Syrian Bank
– Central Bank of India
– DCB Bank
– Dena Bank
– Federal Bank
– HDFC Bank
– ICICI Bank
– IDBI Bank
– IDFC Bank
– Indian Bank
– Indian Overseas Bank
– IndusInd Bank
– Karnataka Bank
– Karur Vysya Bank
– Kotak Mahindra Bank
– Oriental Bank of Commerce
– Punjab National Bank
– RBL Bank
– South Indian Bank
– Standard Chartered Bank
– State Bank of India
– Syndicate Bank
– Union Bank of India
– United Bank of India
– Vijaya Bank

If your banks is not in the list then you can use IFSC code or MMID to make the payment

Can BHIM threaten Wallets

In its current avatar, BHIM lacks the convenience and experience of wallets but with no costs to merchants as of now. it can be a potent threat to wallets. It will need a lot of good marketing and backing to get merchants on board to create network effects which are important for most of the payment apps.

There is no doubt given the right marketing backing and support by banks this can truly threaten wallets