Taking the digital banking to another level, the Indian Government launched a new Android -based smartphone app, Aadhaar Pay on March 7, which will enable the customers to pay directly from their bank accounts through their fingerprints instead of using debit and credit cards. This app will also eliminate fee charged by MasterCard and Visa and is easily available on Google Play Store.
How will this app be used?
The merchants, after downloading this app, would be needing to connect a biometric reader to their smart devices. In order to make any payment through this app, a customer needs to enter his/her Aadhaar number in the app and select the bank from which the payment has to be made. Then the biometric scanner will scan the fingerprints which will be acting as passwords.
Why this app?
Just to make the payment modes much easier, the Government of India has taken this initiative to encourage people to go cashless. Finance Minister Arun Jaitley announced this app in February in his budget speech. 25 billion digital transactions have been targeted by the government on several e-payment platforms in 2017-18. Until April 2016, the Indian government has issued 1 billion Aadhaar cards among which 400 millions are linked to their respective bank accounts.
Who developed this app?
The IDFC bank, headquartered in Mumbai, has developed the Aadhar pay app with collaboration with several other government organisations and the agency that regulates Aadhar cards.
Limitations of this app
An internet connection is required to use this app. Also, this app cannot be used to transfer funds or get immediate information on refunds.
Upcoming payment platforms
Soon, the State Bank of India and Punjab National Bank will be launching their merchant platforms for Aadhaar Pay.