Government Aadhaar Payment App Will Soon Beat Paytm and Other Online Wallets
Modi’s Government new Aadhaar Payment App will make you forget ATM, even Paytm. The government is coming up with an 'Aadhaar Payment App' that could silence digital payments critics. The new app would do away with plastic cards and the point of sale machines once believed to be essential for a less cash society.
Aadhaar Payment App set to simplify Digital Transactions
The app, to be launched on December 25, would also eliminate the fee payments for service providers like card companies such as MasterCard or Visa, which has been a stumbling block in merchants switching to digital payments making it affordable to even merchants in remote villages, said people familiar with the development. All that it needs is an Android phone with the merchant.
How Does It Work?
Merchants need to download the Aadhaar Cashless Merchant App on their smartphones connected to a biometric reader, which is currently available for Rs 2,000. The customer will then feed his or her Aadhaar number into the app, select the bank through which the transaction will take place, and the biometric scan will work as a password for the transaction to be authenticated. "This app can be used by a person to make payments without any phone,'' Unique Identification Authority of India (UIDAI) CEO Ajay Bhushan Pandey.”
Almost 40 crore Aadhaar numbers already stand linked to bank accounts - that is half the adults in India. The aim is to link all Aadhaar numbers with bank accounts by March, 2017."
The government, along with the regulator and payments companies, is working to ensure that the objective of making digital payments a reality across the country.
"The settlement is done through the Aadhaar Bridge, which means it connects a much wider set of people," said Rajiv Lall, MD & CEO at IDFC Bank."Anybody who has Aadhaar seeding done can make payments to merchants with this app. It wouldn't matter if the person does not have a credit or debit card, or even a mobile phone.''