IDFC Launches Aadhaar Pay App

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IDFC Launches Aadhaar Pay App

Aadhaar Pay App : Everything you need to know about

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Before we head to Aadhaar Pay App, let us go through the Trending current affairs articles of this month.

Aadhaar Pay App : What is it?

  • Central government, in a bid to promote Aadhaar-based payment system, has launched a new Android app for merchants to accept payments using their biometric data or the registered data under UIDAI’s Aadhaar number.
  • Aadhaar Payment App launched by the IDFC Bank in association with the government to encourage the use of digital payments.
  • IDFC Aadhaar Pay App would also eliminate the fee currently being charged by the private card companies such as Visa and Master Card.
  • This IDFC Aadhaar Pay App has been launched on 7th March 2017.

AADHAAR PAY APP

Aadhaar Pay App : Requirements for the payment

  • Customer
    • Aadhaar number
    • A bank account linked with Aadhaar
    • Clean fingers
  • Merchants
    • Smartphone
    • Internet connection
    • Aadhaar Pay App
    • Fingerprint scanner
    • Bank account 

Aadhaar Pay App : How it works

  • Merchants or shopkeepers have to install Aadhaar cashless merchant app in their smartphones.
  • Get a fingerprint scanner and connect it with the mobile phone. This biometric device is easily available with the cost of around 2000 Rs.
  • At the time of payment, customers will feed their aadhaar number into the app.
  • The app will fetch all the aadhaar linked bank accounts. You have to choose the desired bank account. This option comes only if you have multiple Aadhaar linked bank account.
  • Put your finger on the fingerprint reader screen. Your fingerprint will work as a password for the payment. The reader would transmit your fingerprint data to the app.
  • Here this biometric data is acting as the password for the bank account and once it matches, it authenticate the transaction
  • The NPCI transfers the money from one account to another. To facilitate this transaction the Aadhaar bridge payment system is used.

Aadhaar Pay App : Why it is required?

  • The IDFC Aadhaar Pay App for merchants would help eliminate the long waiting period and hassle of getting a new POS (Point of Sale) machine.
  • The acceptability of digital payments has also been very poor among the merchants in the country. The lack of connectivity has also made it difficult for the merchants in the country to adopt digital payment systems.
  • Card companies such as Visa and MasterCard are charging 2-3% of the payment.
  • The Aadhaar Payment would also be helpful for customers to get rid of their stacks of plastic money, confusing sets of passwords and their digital payment accounts passwords being stolen. Also, the customers need not to download a digital payment wallet or even a smartphone.

Aadhaar Pay App : Benefits

  • Customers need not to have an android phone or any other device to make payments.
  • No service tax or any other extra charge on the payments using Aadhaar pay app.
  • There is no need to carry debit card or credit card.
  • No need to remember PINs, MPINs and passwords.
  • Instant Payments through aadhaar bridge system this is similar to Aadhaar Enabled Payment system (AEPS).
  • Affordable payment solution for merchants as well as customers.

Aadhaar Pay App : Limitations

  • Aadhaar Pay App makes the payment very easy for the customer, but merchants has to bear extra cost of biometric scanner. However, it is one time expense and cheaper than existing POS machine.
  • Can’t use this system of payment for person to person transfer as fingerprint scanner is necessary.
  • The app works on internet, it makes this system worthless in no coverage area or weak coverage.

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