After demonetisation, every other bank is switching toward the cashless society. with an aim to promote Aadhaar-based payment system, IDFC Bank has launched Aadhaar Pay app as a cashless solution that uses retailers own Android smartphone to enable cashless payments.
Well, the app is designed by IDFC Bank in association with the Unique Identification Authority of India (UDAI) and National Payments Corporation of India (NPCI). The app was announced in the Union Budget 2017-18 last month.
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IDFC Bank Aadhaar-Based Payment App
The app is only available to merchants, who are on-boarded via e-KYC. The app was being trialed by over 1,500 merchants across 16 stated before the launch. This app will enable people to make and receive payments using their Aadhaar number and biometrics.
How Does The App Work?
Merchant will get an SMS link to download the IDFC Aadhaar Pay app on any basic smartphone, which will be connected to an STQC-certified Aadhaar biometric reader. If a purchase is made, the merchant’s Aadhaar linked bank account will be credited.
To make payment, customers need to select their bank’s name and fill one field on the merchant’s phone- their Aadhaar number. The customer’s fingerprint is then used to authenticate the transaction. The customers themselves don’t need a smartphone to complete the transaction.
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Advantages!!
- As the customers themselves don’t need a smartphone to complete the traction, this app will be useful even in rural areas.
- As the transaction is through Aadhaar app, there are no additional charges will be levied, unlike debit and credit cards.
A total of 1 billion Aadhaar numbers have been made and nearly 400 million Aadhaar numbers have been linked to bank accounts. The government targets 25 billion digital transactions on various new payments platforms in 2017-18.
Rajiv Lall, Founder MD & CEO, IDFC Bank, said;
IDFC Aadhaar Pay proves that technology can revolutionise last mile payments. By using the fingerprint as digital identity, it empowers even individuals without a phone to pay electronically for small value transactions. The convenience of Aadhaar Pay is expected to encourage a behavioural shift towards digital payments.
