Aadhaar Payment App: Yet Another Step Towards Cash-Less India, Here’s Everything You Must Know

Mr Prime Minister – Narendra Modi is taking yet another step to help India in becoming a “cash-less” democracy (no pun intended here). The government in association with IDFC Bank, UIDAI, and National Payments Corporation of India has developed the “Aadhar Payment App”.

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What’s the Motto Behind Aadhar Payment App?

The government wants to shift the focus from plastic card and point of sales machines (POS) to an easy alternative that does not levy any additional fee on the merchant. It is a step towards faster adoption for cashless payment. The app comes with zero charges, unlike the fee payments charged by card companies. Especially for the rural population, the app will make digital payment solution accessible to the merchants. But, a merchant would require owning an Android phone to take advantage of the Aadhar Payment app. The app allows seamless transaction across the banking system without charging an extra fee.

How Does It Work?

Firstly, merchants would require downloading the app on their smartphones. To start using the mode, merchants would then need to connect it to a biometric reader, which would cost them Rs. 2,000. For making payments, the customer would be asked to enter his/her Aadhar number into the app, choose the bank for the transaction, and then perform the biometric scan on the machine, which will work as a password to authenticate the transaction. This way only the merchant would need to have a smartphone and biometric machine, while the customer just needs to carry his/her Aadhar cards or memorise the number.