Now, the government has launched the "Aadhaar Payment app' to further ease the payments process".
With Aadhaar Payment, a mobile application that allows users to pay with their fingerprints, the Indian government is hoping to promote the widespread adoption of cashless transactions.
Also, the huge hassle caused by the One Time Passwords (OTP) will also be eliminated with the use of this app as observed in most of the other digital transaction platforms.
But this is where Aadhaar Payment app will ease things for good. With Aadhaar-based payment solutions, the government will not levy any additional charges on merchants, which is a good move to promote cashless payments.
If Aadhaar app is successful it will thrown a challenge to Digital wallet startups like PayTm, MobiKwik, Freecharge etc apart from POS companies like Mswipe, Payu etc.
Aadhar Pay payment app has been developed by the IDFC Bank along with UIDAI and National Payments Corporation of India.
For a transaction, customers have to place their finger on the scanner and then they will be asked to choose which of the bank account they want to credit/debit and the amount will be paid/deducted from that particular account. It has two sides, and one is merchant app, and other is consumer app.
Apart from this Adhar app, the government is doing every bit of them to make the Indian a digital country. Anybody who has Aadhaar seeding done can make payments to merchants with this app. What will happen is each of your bank accounts, linked with your Aadhaar details can facilitate the digital cashless transactions. An SMS link thereafter will enable the merchant to download the IDFC Aadhaar Pay app on any basic smartphone, which will be connected to a STQC-certified Aadhaar biometric reader. All the customer needs to do is feed in his or her Aadhaar number into the app and select the bank for the transaction.
Information Technology and Law Minister Ravi Shankar Prasad told reporters here that 40 crore bank accounts are already linked to Aadhaar while the Finance Ministry is pursuing the banks to connect rest of the accounts also with Aadhaar numbers through the KYC (Know Your Customer) policy.