AEPS, Micro ATM and UPI cash withdrawal all let a customer take cash from their own bank account at your shop. The real difference in AEPS vs Micro ATM vs UPI is how the customer proves it is them: Aadhaar and a fingerprint or iris scan for AEPS, a debit card and PIN for a Micro ATM, and a UPI PIN on their own phone for UPI. Which one to start with depends mostly on what your customers carry.
All three run at Business Correspondent (BC) touch points, the shops and agents through which banks offer basic banking outside their branches. UPI cash withdrawal, added in October 2025, sits alongside AEPS and card-based withdrawals rather than replacing them.
AEPS vs Micro ATM vs UPI: the short answer
| AEPS | Micro ATM | UPI cash withdrawal | |
|---|---|---|---|
| What the customer needs | Aadhaar number, a bank account linked to Aadhaar, and their fingerprint or iris. Above ₹5,000, also their Aadhaar-linked mobile for an OTP | Their own debit card and card PIN | A phone with a UPI app, a bank account linked to UPI, and their UPI PIN |
| Device at your shop | Certified RD fingerprint or iris device | Bluetooth Micro ATM device (PAX, MoreFun or NewLand) paired with the Android app | None extra; the QR code shows in the Payonclick app |
| Per withdrawal in the Payonclick app | ₹100 to ₹10,000, in multiples of ₹50 | ₹100 to ₹10,000, in multiples of ₹100 | ₹100 to ₹5,000, in multiples of ₹100 |
| Official or bank limits | NPCI recommends banks cap it at ₹50,000 per customer over a rolling 30 days | Set by the card-issuing bank | NPCI: ₹10,000 per day and ₹50,000 per month |
| Hours and daily checks | You complete a daily biometric authentication before your first AEPS transaction each day | The device must be charged and paired | Not available from 11:30 PM to 5:00 AM |
| What can go wrong | Fingerprint does not match; customer has no phone for the OTP above ₹5,000 | Wrong PIN; card declined by the bank; device not paired | QR code expires after about a minute; daily or monthly limit used up; night window |
For AEPS and Micro ATM, the customer's bank can also apply its own limits. Current limits for every service, with their sources, are on our rules and limits page.
AEPS in detail
AEPS (Aadhaar Enabled Payment System) lets a customer use their Aadhaar number to reach their Aadhaar-enabled bank account at a BC, as the RBI directions on AePS touchpoint operators describe it. In the Payonclick app it offers cash withdrawal, balance enquiry and mini statement.
The customer gives their Aadhaar number and scans a fingerprint or iris on a certified RD (registered device) scanner. Face authentication is not accepted for AEPS transactions in the Payonclick app. Supported fingerprint devices include Mantra MFS110 and MFS100, Morpho/IDEMIA MSO 1300/1350 and MorphoSmart, Startek FM220 and FT11, SecuGen Hamster Pro 20 and Tatvik TMF20, plus Precision, Evolute and NEXT Biometrics models. For iris, the app supports Mantra MIS100 and MIS100 V2.
Limits. In the app, a cash withdrawal can be ₹100 to ₹10,000 per transaction, in multiples of ₹50. A withdrawal above ₹5,000 also needs an OTP sent to the customer's Aadhaar-linked mobile number. Exactly ₹5,000 does not, and the OTP can be resent after 30 seconds. On top of this, NPCI circular NPCI/2023-24/AePS/087 recommends that banks cap a customer's AEPS cash withdrawals, counted together with Aadhaar-based merchant payments, at ₹50,000 over a rolling 30 days. Declines for crossing that cap use response code 61.
Your daily check. Once each day, before AEPS transactions, you authenticate your own Aadhaar biometrically in the app. Fingerprint, iris or face are accepted for this daily check, and location (GPS) permission is required.
Where the money goes. AEPS amounts land in your AEPS wallet. A move from there to your Main wallet completes immediately. Settlement to your own bank account goes by IMPS and is processed in the background, so it is not instant.
Strengths and trade-offs. AEPS suits customers who have an Aadhaar-linked account but no debit card or smartphone. Fingerprints can fail to match, for example on worn or dry fingers, and a larger withdrawal needs the customer's Aadhaar-linked phone at hand for the OTP.
Micro ATM in detail
A Micro ATM is a small card device that lets a customer withdraw cash at a BC with their own debit card and card PIN. It was one of the established ways to take cash at BC touch points long before UPI cash withdrawal arrived.
In the Payonclick app, Micro ATM works only on the Android app, paired with a Bluetooth Micro ATM device from a compatible maker: PAX, MoreFun or NewLand. It offers debit card cash withdrawal, balance enquiry and mini statement. The customer uses their own card and enters their own PIN.
Limits. In the app, a cash withdrawal can be ₹100 to ₹10,000 per transaction, in multiples of ₹100. The card-issuing bank sets its own limits. We found no public RBI or NPCI per-transaction cap for card withdrawals at Micro ATMs, so the card-issuing bank's limit is the one to check.
Onboarding. Micro ATM uses the same AEPS merchant onboarding, so there is no separate merchant sign-up.
Strengths and trade-offs. Micro ATM suits customers who carry a debit card and know its PIN, and it needs no biometric match. It cannot help a customer who has left their card at home or forgotten the PIN, and you need a charged device paired over Bluetooth before you can serve anyone. Never ask a customer to tell you their PIN; they should enter it themselves.
UPI cash withdrawal in detail
UPI (Unified Payments Interface) cash withdrawal is the newest of the three. NPCI enabled it through circular NPCI/UPI/OC-225/2025-26 of 7 October 2025, and it has been live in the Payonclick app since August 2026.
Enter amount and mobile
You enter the amount and the customer's mobile number, which is mandatory.
Show the QR code
The app shows a dynamic UPI QR code that is valid for about a minute.
Customer approves
The customer scans it with any UPI app and approves with their UPI PIN.
Hand over the cash
Once the payment succeeds, you hand over the cash.
Limits. In the app, each withdrawal can be ₹100 to ₹5,000, in multiples of ₹100. The NPCI circular sets ₹5,000 per transaction, ₹10,000 per day and ₹50,000 per month, requires two-factor authentication on every transaction, and does not allow UPI Lite or credit accounts. The service is not available in the app between 11:30 PM and 5:00 AM. For the full breakdown, read our guide to UPI cash withdrawal limits.
Strengths and trade-offs. UPI needs no card, no fingerprint and no extra device at your shop, and the customer's UPI ID is masked in your history. But its per-withdrawal limit is the lowest of the three, the customer needs a smartphone with UPI set up, and the night window rules out late customers.
Which to start with at your shop
Look at who comes to your counter. Each service fits a different kind of customer:
Rural Aadhaar users
Customers with an Aadhaar-linked bank account but no debit card or smartphone. AEPS serves them with a fingerprint or iris scan; remember the OTP needed above ₹5,000.
Debit card holders
Customers who carry a debit card and know its PIN. A Micro ATM serves them with no biometric scan, up to ₹10,000 per withdrawal in the app.
Smartphone UPI users
Customers who already pay with UPI. UPI cash withdrawal serves them on their own phone with no extra device at your shop, up to ₹5,000 per withdrawal.
One practical order:
- Complete AEPS merchant onboarding first. Micro ATM uses the same onboarding and UPI cash withdrawal requires it, so you need this step whichever service you offer.
- Add UPI cash withdrawal if your customers use UPI, because it needs no extra device.
- Add a Micro ATM device when card-holding customers ask for it, or when fingerprint mismatches keep turning AEPS customers away.
Offering more than one service gives you a fallback at the counter. If a customer's fingerprint does not match on AEPS, they may still be able to withdraw with their debit card on a Micro ATM, or with UPI on their phone.
Offering all three from one app and one onboarding
You can run AEPS, Micro ATM and UPI cash withdrawal from the same Payonclick account, and you can join directly or through your distributor:
Register
Sign up on payonclick.in or in the Payonclick app with your name, gender, mobile number (verified by OTP), email and password.
Complete KYC
Share Aadhaar and PAN through DigiLocker, which is approved automatically when the names match, or fill in the KYC form for our team to review.
Sign the agreement
Sign the retailer agreement by eSign once your KYC is approved.
Activate services
Choose the services you want. Activation charges apply per service, and our team shares them.
Complete AEPS merchant onboarding
Give your shop and bank details and set a 4 to 6 digit merchant PIN, then finish Aadhaar eKYC (OTP plus biometric) and bank eKYC.
The app requires bank eKYC for new merchants because of the RBI directions on due diligence of AePS touchpoint operators (RBI/2025-26/63, dated 27 June 2025, in force from 1 January 2026). They require acquiring banks to do KYC on every operator, including sub-agents, and to redo it after 3 consecutive months of inactivity.
For details on each service, see our pages on the AEPS retailer ID, the Micro ATM service with a Bluetooth device and the UPI cash withdrawal service. Charges and commission are shared by our team on request. You can get the Payonclick app on Google Play.