The Union Government on 25 December 2016 launched the Aadhaar Payment App with an aim to simplify the digital transactions. This app will do away with the need of carrying plastic cards and the point of sale machines.
It will also do away with the additional fee payments for service providing card companies such as Mastercard or Visa.
Highlights of the Aadhaar Payment App
• There are two sides to this Aadhaar Payment app, one is the consumer app and the other is the merchant app.
• On the consumer front, the app is just like any mobile wallet which will be used to transfer money.
• The customer needs to enter his or her Aadhar number into the app, select the bank through which the transaction will take place and then the biometric scan will work as a password for the transaction to be authenticated.
• While, merchants will require two things to use this app, one is an Android smartphone and second is a fingerprint scanner.
• This app can also be used by a person to make payments without any phone.
• The app was developed by IDFC Bank along with UIDAI and National Payments Corporation of India.
In order to spread awareness about this app, the government will conduct workshops to train 14 lakh Village Level Entrepreneurs (VLE) across 500 districts and 6500 blocks and will explain the methodology to carry out digital transactions through this app.
Presently, almost 40 crore Aadhaar numbers already stand linked to bank accounts. The main aim of this app is to link all Aadhaar numbers with bank accounts by March 2017.
The government, along with the regulator and payments companies, has been working to ensure that the objective of making India a digital economy is achieved across the country as soon as possible.