What is the Difference Between AEPS Service and UPI Transaction
Are you confused between AEPS service and UPI transaction? Do you want to know the difference between the two payment methods? Then, you are in the right place. In this article, we will explain the key differences between AEPS service and UPI transaction, their features, advantages, and disadvantages.
Introduction
AEPS (Aadhaar Enabled Payment System) service and UPI (Unified Payment Interface) transaction are two popular payment methods in India. Both of them have gained popularity in recent years due to their convenience, security, and speed. However, there are significant differences between the two payment methods.
Let's dive deeper into the topic and understand What is the Difference Between AEPS Service and UPI Transaction.
What is AEPS Service?
AEPS is a payment system that enables banking transactions using Aadhaar authentication. It is a government initiative that aims to provide financial inclusion to all citizens of India, especially those who do not have access to banking facilities. With AEPS, you can perform banking transactions such as cash deposits, cash withdrawals, balance inquiries, and fund transfers using your Aadhaar number and fingerprint authentication.
What is UPI Transaction?
UPI is a payment system that allows you to transfer money between two bank accounts instantly. It is a fast, secure, and easy-to-use payment method that works 24x7. You can use UPI to pay for goods and services, transfer money to friends and family, and even pay bills.
Key Differences Between AEPS Service and UPI Transaction
Here are the key differences between AEPS service and UPI transactions:
Authentication Method:
AEPS uses an Aadhaar number and biometric authentication (fingerprint or iris scan) to authenticate the user. On the other hand, UPI uses a Virtual Payment Address (VPA) or UPI ID and MPIN (Mobile Personal Identification Number) to authenticate the user.
Accessibility:
AEPS requires a bank account linked with an Aadhaar number to access the service. Whereas, UPI does not require the user to link their bank account with Aadhaar.
Transaction Limit:
AEPS has a lower transaction limit compared to UPI. The daily transaction limit for AEPS is Rs 10,000, whereas the limit for UPI is Rs 1 lakh.
Transaction Charges:
AEPS transactions are free of cost for customers, while UPI transactions may incur a nominal fee.
Availability:
AEPS is available at select banking correspondents, while UPI is available on most banking apps and websites.
Advantages of AEPS Service
Financial Inclusion:
AEPS enables banking transactions for people who do not have access to banking facilities.
Secure:
AEPS uses Aadhaar authentication, which makes it a secure payment method.
Convenient:
AEPS transactions can be performed using a fingerprint scan, which makes it convenient for users.
Advantages of UPI Transaction
Easy-to-use:
UPI is a user-friendly payment method that can be accessed through a mobile app.
Fast:
UPI transactions are processed instantly, which makes it a fast payment method.
Secure:
UPI transactions are secured with a unique VPA and MPIN, which makes it a secure payment method.
Disadvantages of AEPS Service
Limited Accessibility:
AEPS is only available to select banking correspondents, which makes it less accessible than UPI.
Lower Transaction Limit:
The daily transaction limit for AEPS is lower compared to UPI, which may be a disadvantage for users who require higher transaction limits.
Disadvantages of UPI Transaction
Network Connectivity:
UPI transactions require a stable internet connection, which may be a disadvantage for users who do not have access to the internet or have a poor internet connection.
Transaction Failure:
UPI transactions may fail due to technical issues, network errors, or incorrect information, which can be inconvenient for users.
FAQs
Q. Can I transfer money from AEPS to UPI or vice versa?
A. No, you cannot transfer money from AEPS to UPI or vice versa. Both payment methods work differently.
Q. Is Aadhaar linking mandatory for UPI transactions?
A. No, Aadhaar linking is not mandatory for UPI transactions.
Q. Which payment method has a higher transaction limit, AEPS, or UPI?
A. UPI has a higher transaction limit compared to AEPS. The daily transaction limit for UPI is Rs 1 lakh, while for AEPS, it is Rs 10,000.
Q. Are there any transaction charges for AEPS and UPI transactions?
A. AEPS transactions are free of cost for customers, while UPI transactions may incur a nominal fee.
Q. Is UPI more accessible than AEPS?
A. Yes, UPI is more accessible than AEPS. UPI is available on most banking apps and websites, while AEPS is only available at select banking correspondents.
Q. Which payment method is more secure, AEPS, or UPI?
A. Both payment methods are secure in their own ways. AEPS uses Aadhaar authentication, which makes it a secure payment method, while UPI transactions are secured with a unique VPA and MPIN.
Conclusion
In conclusion, Aadhaar Enabled Payment System (AEPS), UPI transaction, and Aadhaar-based payment are all popular payment methods in India that serve different purposes. AEPS is more suitable for people who do not have access to banking facilities and can perform banking transactions using Aadhaar authentication. UPI is a user-friendly payment method that can be accessed through a mobile app and allows for instant money transfers. Aadhaar-based payment allows customers to link their Aadhaar number with their bank account and make payments using biometric authentication. All of these payment methods are secure and offer fast and convenient transactions. We hope this article helped you understand the differences between these payment methods and their unique advantages.