Aadhaar Pay, which can be used for mobile payments, was announced by the Indian finance minister Arun Jaitely last week. Many of the people have no idea about what is Aadhaar Pay? and how to use it to send and receive payments?
After the demonetization move in India which hits the cash flow of more than 1 billion people. As an alternative way to send and receive payments easily, the mobile wallet apps are suggested and marketed by many. It leads to the sudden growth of corporate payment wallet apps like paytm, freecharge etc. Media and Public criticized the government for not implementing and encouraging public sector wallet apps.
To resolve the complaints, BHIM app and UPI payment system was promoted in the past weeks. Now one more app called Aadhaar Pay is announced by the finance minister.
What is Aadhaar Pay?
Aadhaar Pay is an Aadhaar card identification based payment app. Using that, merchants can receive payments from the customers. Currently the Aadhaar Pay is available in Android platform. Anyone can download it from the playstore and use it for sending and receiving payments.
How to use Aadhaar Pay?
Merchants have to install and register with Aadhaar Pay. After the registration, the merchant should link the Aadhaar Biometric reader for authentication.
When customers want to pay using the Aadhaar Pay, they have to enter the Aadhaar linked Bank account followed by their Aadhaar number. After that, they have to authenticate the payment using their fingerprint on the biometric scanner. And that’s it. The money will be transferred from the customer bank account to the merchant bank account easily.
There is no mobile wallet or other third party involved in Aadhaar Pay method of transactions. Also, we have to note that the customer don’t need to have a smartphone. Only the merchant need to have the fingerprint biometric scanner and Aadhaar Pay app enabled in a smartphone.