So there s good news! Soon, consumers will be able to get rid of their stacks of plastic money, the confusing sets of passwords, and the fear of their digital payment account passwords being stolen. Answering the essays of criticism to the digital mobile wallets, the government of India is now set to launch the Aadhaar Payment app, which as the name suggests, will facilitate Aadhaar-linked digital payments. Also Read - How to apply for Aadhaar card for your newbornAlso Read - Aadhaar-PAN link deadline: Income Tax website is down; users demand for date extension
The Aadhaar Payment app, which is scheduled to be launched tomorrow, that is December 25, uses consumer s Aadhaar card details and their linked bank account details, along with their biometric scans to authenticate transactions. Which means, that users would no more need to download wallet apps, and can make transactions and purchases directly using their Aadhaar card number, with the help of Unified Payment Interface (UPI). Here is how that works. Also Read - How to apply for Driving License, RC online without visiting RTO office: MoRTH makes 18 RTO services available online
So you must have been receiving constant notifications from your bank lately, to update your Aadhaar card details with them. So, that was for a reason. Those linked bank account details with Aadhaar is being planned by the government to digitize your payments. How this would work is, if things go as planned, your each bank account, would be linked with your Aadhaar details. Now, the Aadhaar Payment app has two sides to it, one is the merchants app, and the other is the consumer app. ALSO READ: Aadhaar Payment App to launch tomorrow
While the consumer app is just another form of mobile wallet, which is linked with your Aadhaar card in this case, that can be used to make quick online transactions. However, the primary part of the Aadhaar Payment app is the merchant app. And the interesting bit of the entire merchant version of the Aadhaar Payment app is that it does not require the consumer to install that app in their phone s to successfully make payments, like how you need it right now in case of mobile wallets like Paytm, Mobikwik, Freecharge and the likes.
Talking about the merchants app, in essence, all that the merchant would need for the Aadhaar Payment app to work is an Android smartphone, and a biometric scanner. Now, when a consumer makes purchase, they would just require to share their Aadhaar card detail, which would automatically list down their linked bank account, and choosing the favoured bank account will process the payment from that particular bank, which will further be authenticated using biometric scans (flashback to the multiple fingerprint and biometric scans that you gave for making your Aadhaar cards). ALSO READ: Now, you can make payments via Aadhaar Card and mobile number only
Also, in case you are wondering, in an event where a customer has two accounts in the same bank, when you link your accounts with Aadhaar, you would be asked to choose a primary account out of the two, so that whenever any Aadhaar-based transaction is done it will credit or debit from that chosen account by default.
The Aadhaar Payment app aims to eliminate the fee payments for service providers like card companies such as Mastercard or Visa, which has been a stumbling block in merchants switching to digital payments making it affordable to even merchants in remote villages, said people familiar with the development. ALSO READ: InFocus to launch Aadhaar-enabled smartphone with Iris scanner, 4G VoLTE support