In a bigger leap towards digitizing the economy, and in an effort to calm down the big crowd criticizing digital payments, the government of India is preparing to launch an Aadhaar Payment App . The app aims to do away with the plastic money and the PoS machines all together. Reported by ET Telecom, the Aadhaar Payment app is set to launch launch tomorrow, that is, December 25. Also Read - Aadhaar card update: How to add or update phone number in Aadhaar card onlineAlso Read - Lost your Aadhaar card? Here's how to download Aadhaar card online
Essentially, right now every time a user makes an online transaction or purchase using a credit or debit card, they are levied a convenience fee. The same way, even merchants pay an amount of fees every time they accept a digital payment, and so this fee has been holding back a lot of merchants from switching to digital payments. However, with the Aadhaar Payment app, the government aims to eliminate that fees, making it affordable for ever merchants to go cashless. Also Read - How to apply for Aadhaar card for your newborn
Now, there are two sides to the Aadhaar Payment app, one is the consumer app, which like any mobile wallet, will be used to transfer money. And the other is the merchant app. The latter requires just two things to work, one is an Android smartphone and second is a fingerprint scanner. Remember giving your fingerprint scans when you got your Aadhaar cards made, well this new payments app by the government will now do away with passwords and just use biometric scanners to authenticate your transaction. ALSO READ: InFocus to launch Aadhaar-enabled smartphone with Iris scanner, 4G VoLTE support
Basically, when making purchase with a merchant, a consumer would not even need a mobile app in the first place, like you do right now in case of mobile wallets like Paytm, Freecharge, Mobikwik, among others. A customer can simply feed in their Aadhaar number into the app, select the bank through which the transaction will take place,and the biometric scan will work as a password for the transaction to be authenticated.
This app can be used by a person to make payments without any phone. Almost 40 crore Aadhaar numbers already stand linked to bank accounts that is half the adults in India. The aim is to link all Aadhaar numbers with bank accounts by March, 2017. Unique Identification Authority of India (UIDAI) CEO Ajay Bhushan Pandey told ET Telecom. ALSO READ: Now, you can make payments via Aadhaar Card and mobile number only
Additionally, to spread awareness about this new digital payment method, IT and Law Minister Ravi Shankar Prasad had said that government will conduct workshops to train 14 lakh Village Level Entrepreneurs (VLE) across 500 districts and 6500 blocks about carrying out digital transactions which will be attended by Members of Parliament as well. As per the program, each VLE will train 40 individuals covering 80 lakh individuals and at least 10 shopkeepers with target to cover total of 25 merchants across country. He said that Ministry of Electronics and Information Technology will organise a two-day event at Major Dhyanchand National Stadium in Delhi to create awareness about digital payments and also help people open bank accounts and enroll for Aadhaar