Aadhaar Pay will simplify payments process by bypassing credit and debit cards, PINs and passwords. The new payments solution is expected to launch within a week.
At the time of launching the BHIM app in December last year, PM Narendra Modi also announced that the government will be launching a payments solution for merchants called Aadhaar Pay. The solution is expected to completely revolutionize the digital payments ecosystem in India. It was showcased at DigiDhan Mela to demonstrate how it works, but the launch was delayed due to lack of detailed specifications for registered devices that would be used for accepting payments from merchants. Now, the government seems ready to go live with Aadhaar Pay in the next couple days.
The Unique Identification Authority of India (UIDAI) has now come up with specifications on the type of registered devices will be allowed for accepting payments. “Some people had highlighted some security concerns with it. If we want Aadhaar to proliferate, we need detailed guidelines on the kind of the devices that can be deployed,” an official familiar with the matter told ET. “Now that guidelines are there and other security concerns have been taken care of, we expect more banks to join the system,” the official added.
Aadhaar Pay will be launched in the next couple of days, the publication reports. The payment solution will debut with State Bank of India (SBI), IDFC Bank, IndusInd Bank and Syndicate Bank. Other banks such as Punjab National Bank and Bank of Baroda are also expected to launch their Aadhaar Payment solution soon. The government has also set up a timeline of March 31 2017 for all other banks to launch their Aadhaar Payment solution. According to the recent figures, around 112 crore people have Aadhaar numbers, and around 40 crore bank accounts have already been linked. ALSO READ: Demonetization: How to get started with UPI apps and go cashless to beat the cash crunch
A pilot was also conducted in Andhra Pradesh at the DigiDhan Mela where shopkeepers used Aadhaar Payment system to accept payments. Aadhaar Pay will be a merchant app that will enable them to receive payments from customers using biometric authentication. One of the biggest advantages of Aadhaar Payment app is that it will bypass the need of using a credit or debit card and having to punch the 4-digit PIN. What’s more, the customer doesn’t even need a to carry a smartphone to make the payment. ALSO READ: Now, you can make payments via Aadhaar Card and mobile number only
To be able to make the payment using Aadhaar Pay, customers need to have their Aadhaar number linked to their bank account. At the payment counter, the customer needs to provide the Aadhaar number, select the bank account from which the amount is to be deducted and scan the fingerprint on the device, and that’s it. The money will be deducted from customer’s bank account, and the amount will be instantly credited into the merchant’s account. ALSO READ: How to use USSD-based mobile banking, here’s everything you should know
Besides Aadhaar Pay, the government has also come up with Bharat QR Code, a common QR code that will enable users to make digital payments to merchants buy simply scanning the QR code using their smartphones. With proper implementation, we would soon end up making digital payments even for basic smallest things such as buying vegetables, milk and more. ALSO READ: Bharat QR Code: Here’s everything you need to know about India’s new digital payment system