New CSP operators are often sold a device before anyone explains what it does. Micro ATM, mPOS and AEPS are not three brands of the same thing. They are three different services, and you may need one, two or all three.
AEPS: FINGERPRINT BANKING
AEPS stands for Aadhaar Enabled Payment System. The customer gives their Aadhaar number, chooses their bank, and authenticates with a fingerprint. No card and no PIN.
With AEPS you can offer cash withdrawal, balance enquiry, mini statement and Aadhaar to Aadhaar fund transfer.
The only hardware you need is an L1 fingerprint scanner and something to run it on. That is why AEPS is where almost everyone starts. It is the cheapest service to launch and, in rural areas where many customers have no debit card, it is often the busiest.
MICRO ATM: CARD BANKING WITHOUT AN ATM
A micro ATM is a small handheld terminal that accepts a debit card and a PIN. It does cash withdrawal, balance enquiry and often mini statement, working over your mobile network.
The customer experience is the familiar one, insert card, enter PIN, take cash from you. It serves people who have a card and prefer it, and it works for customers whose fingerprints fail.
Most micro ATMs sold in India also include a fingerprint sensor, so a single device covers both card and AEPS transactions. The Fino AF60S and PAX D180 are common examples.
mPOS: TAKING CARD PAYMENTS
mPOS means mobile Point of Sale. This is a card machine for accepting payments to a merchant, the same as the machine in a shop, but portable and paired to a phone.
If your plan is banking services for customers, mPOS is not your priority. If you also run a shop, or you want to sign up local merchants and earn on their card turnover, then it matters.
The line between micro ATM and mPOS has blurred, and many devices now do both. Read the specification rather than the category name.
WHICH TO BUY FIRST
Start with AEPS. A good L1 fingerprint scanner and a phone or laptop gets you trading at the lowest cost, and it addresses the largest unserved group in rural India, customers with an Aadhaar-linked account and no card.
Add a micro ATM once your AEPS volume is steady. It widens your customer base to cardholders and gives you a fallback when a customer's fingerprints will not read. This is usually the second largest earner.
Add mPOS only if merchant acquiring is genuinely part of your plan.
Consider an iris scanner before mPOS if your area has many elderly or manual-labour customers. Recovering failed authentications earns more than a service you may not use.
THE PRACTICAL POINTS
Whatever you buy, confirm three things: that your bank or BC platform supports that exact model, that RD Service is available and what renewal costs, and what the warranty term is.
Also check what the device needs to run. Some micro ATMs are standalone with their own SIM. Others must pair to your phone by Bluetooth, which means your phone battery is now part of your business.
You can compare the current range at /category/mpos-machine and /category/biometric-fingerprint-scanner.
IN ONE LINE
AEPS is fingerprint banking and it is where you start. Micro ATM adds card banking and is where you grow. mPOS is for merchant payments and only matters if that is your plan.