As most of us are already aware, the government has been trying to boost the digital payment initiatives in the country in order to promote a cashless economy after the demonetization exercise last year. With the same in mind, a new android application has been launched for the merchants so that they can accept payments from customers using their biometric data. This is of course the data stored with UIDAI’s Aadhar number. Aadhar payments or Aadhar pay, as it is popularly being called, is the android application for merchants that has been developed jointly by IDFC Bank, NPCI and UIDAI.
So here’s what exactly is the Aadhar payments app and how it works.
How does the Aadhar Payments App Work?
Before we explain how the application works, it is important to know that the aadhar payments app will work only if the Aadhar number is linked to the bank account of the customer.
Coming to the working of the app, the Aadhar pay application will be soon available on Google Play. The app can be easily used to make transactions through the use of biometric data stored in Aadhar.
Using Aadhar Payments App if You are a Merchant
In case you are a merchant:
- You need to download the Aadhar pay application from the Google Play on your smartphone.
- the merchant must first install the app on his/ her smartphone and then, create a registered ID.
- Install and link a fingerprint/ biometric scanner linked to that smartphone.
- It is important that the smartphone is connected to the merchant’s bank account and an internet connection is available.
Using Aadhar Payments App if You are a Customer
If however, you are a customer, you need:
- an Aadhar number that is linked to your bank account.
- accurate biometrics which are linked to your Aadhar. Since they are used to authenticate the payments.
- the customer needs to provide the name of his/her bank, his/ her Aadhar number.
- then register the fingerprint on a biometric scanner so that the transaction can be authenticated.
With this application, you can forget about your debit or credit cards and make payments using just the thumb!
Advantages of Using the Aadhar Payments App + Important Things to know:
1. No Extra Charges
If you are using the Aadhar payments app to make transactions, no extra charges are levied. This is unlike the charges levied on other cards such as debit or credit cards at POS machines.
2. Cheaper for Transactions
A POS machine costs usually more than Rs. 5000/- whereas a biometric scanner will cost only round Rs. 2000 for installation. Hence, for merchants, accepting payments via the Aadhar payments app is cheaper when compared to debit/ credit cards for which a POS machine is needed.
In case of customers, no annual charges are to be paid while using the application unlike debit or credit cards which incur some annual charges.
Since the transactions via the Aadhar payments app requires physical presence of the customer along with the biometric authentication, the transactions tend to be more secure.
- The Aadhar Pay works only under internet connectivity.
- Also, the app cannot be used to transfer funds to another account.
We hope we were able to solve your doubts regarding the freshly launched Aadhar payments app and that you are able to use the app successfully. For any other Aadhar card related queries, please feel free to explore the website or leave your comments below.
Have a nice day!