Now, who would have thought of making payments with mere thumb impressions? But, it’s actually happening with our worthy PM’s efforts. Aadhaar Pay app is being launched today in Nagpur by our PM Narendra Modi. If you are still scratching your head, and wondering what Aadhaar Pay app is all about, here are a few things that you should know:
Aadhaar Pay app
On the account of the birth anniversary of B.R. Ambedkar, our Father of Indian Constitution, PM has come up with this biometric-based payment mode, and this will certainly be something that never happened before in our Indian history. When PM had launched the digital payments app called ‘BHIM’ on 30 December, 2016, he threw some light on Aadhaar Pay app as well. Further, he added,” Download it (BHIM) on a smartphone or on a feature phone. It is not necessary to have the internet for this app. In the next two weeks, one more work is being done, which will increase the power of BHIM so much that you would be able to withdraw money even with your fingerprints.”
IDFC was the first bank that introduced Aadhaar Pay earlier in this month, and now PM has taken a step forward to launch it in Nagpur today. By using this app, you won’t be required to carry your smart cards along for making payments, and it will further promote the vision of ‘cashless transactions’.
Still, we guess many questions are popping up in your mind. Therefore, we have answered some very crucial questions about Aadhaar Pay app below:
What is Aadhaar Pay all about?
Aadhaar Pay, being the merchant version of the Aadhaar Enabled Payment System (AEPS), will be bliss for the buyers who don’t use debit cards, credit cards, mobile wallets, or even a smartphone. Instead, the merchants whom they are dealing with, must have a smartphone and this smart app.
Who will need the Aadhaar Pay app?
As mentioned above, only the merchants are bound to download this app. Having an Aadhaar-linked bank account, smartphone, and smartcard will be enough to make digital transactions happen in a blink of an eye. With distinctive 12-digit Aadhaar number of the customers, the merchants can transfer the specific amount from buyer’s account to their own account. The customers, while authenticating their transactions with fingerprints, can make payments with their Aadhaar-linked bank accounts.
How can one use it?
Aadhaar Pay app’s compatibility for both Android and iOS phones makes it reliable for every merchant. Just login with your Aadhaar number and scan your fingerprints on the screen. You will receive confirmation once the information provided is successfully verified. And finally, you are eligible to receive payments from customers with this app.
Is it safe to use?
Definitely YES! As per the NITI Aayog, the Aadhaar Pay app will use two different platforms for ensuring security of both the parties. Aadhaar Payment Bridge (APB) will be in charge of conducting fuss-free and reliable transactions from customers’ bank, while Aadhaar Enabled Payment System (AEPS) will regulate and control the entire cyber process.
How will it benefit customers?
Customers won’t require internet, debit card, or smart card for making payment via Aadhaar Pay app. ‘Customer is King’ here again, and their fingerprints and Aadhaar-linked bank accounts will be enough to make payments to the merchants.
Will merchants be liable to bear bank charges?
Generally, merchants pay Merchant Discount Rate (MDR) to banks, when their customers pay via smart cards. But in case of Aadhaar Pay, they won’t have to pay any sort of additional charges to the merchant banks.
We can conclude that Aadhaar Pay app will be equally beneficial for merchants as well as customers, and it will drive India closer towards achieving the objective of being cashless.