Government

Aadhaar Pay Launched, BHIM App Updated With UID Support; Revolutionising Payments For More Than 111 Cr Indians

Indian Business Blog featuring on Business, Technology and Education
Written by Harshad Patankar

After launching the Bharat Interface for Money (BHIM) The government will be launching a new payment mechanism called Aadhaar Pay which will allow any person with his Aadhaar number linked to Bank account, can make and/ or receive payment, with a thumb impression alone.

This will become revolutionary payment method as number of Aadhaar enrolments in the country has crossed 111 crore covering around 98% of the country’s population out of over 125 crore, the ministry of electronics and IT said in a press release.

“We are going to start Aadhaar Pay. With this people will not require to carry their phone for payments. They can visit any merchant, share their Aadhaar number and verify themselves using biometrics to pay and receive money,” Prasad said.

Aadhaar Pay is not the same as the Aadhaar Enabled Payment System (AEPS),which allows cash withdrawal, deposit and funds transfer at POS (MicroATM) developed by NPCI. Government is also linking Aadhaar with the BHIM app to make Aadhaar as your universal payment Id.

The App was launched on 24 December itself in Andhra Pradesh. The application launch at a fair price shop was inaugurated by AP Chief Minister Chandrababu Naidu

Benefits of Aadhaar payment App

Now you are aware about the ease of the Adhaar Payment app. It is easy to customer as merchants need to arrange for the smartphone, App and fingerprint scanner. Let us compile the benefits of the Adhaar Payment app.

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

Requirement For Aadhaar Pay

Following are the Adhaar Pay requirements for customer and merchants.

Customers Requirement

  • Your Aadhaar number
  • A bank account linked with Aadhaar
  • Clean Fingers

Merchants Requirements

  • Smartphone
  • Reliable Internet connection
  • Aadhaar Payment App
  • Fingerprint scanner certified by UIDAI
  • Bank account

 How Aadhaar Pay work?

For making a working Adhaar Pay system you have to go through the following steps.

  1. Merchants or shopkeepers have to install Aadhaar cashless merchant app in their smartphones.
  2. Get a fingerprint scanner and connect it with the mobile phone. It can be done by using simple USB cable. You can also but fingerprint scanner online. The price starts from Rs 2000.
  3. At the time of payment, customers will feed their Aadhaar number into the app.
  4. The app will show all the linked bank accounts. You have to choose the desired bank account. This option comes only if you have more than one Aadhaar linked bank account.
  5. 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.
  6. The app tallies your fingerprints with the available data in Aadhaar database. If it matches, the NPCI would get the go ahead message. The NPCI transfers the money from one account to another. To facilitate this transaction the Aadhaar bridge payment system is used.

The UIDAI and NPCI both plays their roles in this payment. To promote digital payment we may also see various benefits to customer in coming budget 

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About the author

Harshad Patankar

My name is Harshad Patankar and I am the chief blogger at BumbleBeeHub Blog and where I like to share my internet/tech experience along with some fascinating updates around the Business, Technology, Education and Government sectos with my online readers on this website. You can read more about me at my About Page. You can follow me on Twitter, Facebook & Google