New Delhi, December 26: Moving towards its dream for less cash and digital society, the central government has launched an 'Aadhaar Payment App' that would do away with plastic cards and the point of sale machines once believed to be essential for a cashless economy.
IDFC Bank along with UIDAI and National Payments Corporation of India has developed this app.
This app would not only help customers but also to merchants as it will make digital payments affordable. The app would eliminate the fee payments for service providers like card companies such as Mastercard or Visa. "It wouldn't matter if the person does not have a credit or debit card, or even a mobile phone. Anybody who has Aadhaar seeding done can make payments to merchants with this app,” said Rajiv Lall, MD & CEO at IDFC Bank.
How does it work?
Merchants need to download the Aadhaar cashless merchant app on their smartphones, which they have to connect with a biometric reader. The biometric reader is currently available for Rs 2,000. The customer will then feed his or her Aadhar 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 told ET. "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 central government is extensively urging citizens to adopt digital technology after Prime Minister Narendra Modi in his address to the nation on November 8 declared that high-denomination currency notes of Rs 500 and Rs 1,000 would not remain legal tender from midnight.
Earlier on December 15, the NITI Ayog announced daily, weekly and mega awards up to Rs 1 crore for consumers and merchants who take to digital payments.