IDFC Bank launches Aadhaar Pay; here's how biometric-based app works
IDFC Bank on Tuesday launched the biometric-based Aadhaar Pay payment system, a media report said.
Aadhar Pay service is for merchants which will enable them to receive Aadhaar-enabled payments bypassing credit and debit cards, pin and password. The biometric reader is currently available for Rs 2,000.
With the introduction of first of its kind, the bank targets to bring around 50,000-75,000 merchants onboard by 2019 and total touching 1,00,000 merchants in three years, as reported by The Economic Times.
Quoting Rajiv Lall, founder MD and CEO, of IDFC Bank, the report said, "All one needs is to get the bank account number linked with Aadhaar. Basic banking services will come to those who even do not have basic mobile phones," he said.
Moreover, Amitabh Kant, CEO of NITI Aayog, who was also present at the launch of Aadhaar Pay, said that all banks must follow IDFC in adopting this model. If they don’t follow this lead, technology will make them redundant, a LiveMint report quoted.
Kant is part of the chief ministers committee that will lay out a road map for implementation of digital payments over the next one year.
How does it work?
For instance, a merchant wants to receive the payment:
1.Merchant needs to download the Aadhaar Pay app on their phones
2. Link the app to Aadhaar biometric reader
3. Once this app is linked, merchant will be able to start transacting with customers.
If a customers wants to make a payment:
1. Select the bank on the touchscreen
2. Enter your Aadhaar national ID number
3. Scan fingerprints on the device to get the confirmation
As per the report, the bank has been launched after three-months of trial involving 1500 merchants across 16 states.
Finance Minister Arun Jaitley in his Union Budget 2017 address said that the government was committed towards pushing India towards a digital economy in which there would be greater accountability. He said a mission will be to set up with a target of 2,500 crore digital transactions for 2017-18 through UPI, USSD, Aadhar Pay, IMPS and debit cards.
Before Jaitley, Ajay Bhushan Pandey CEO of Unique Identification Authority of India (UIDAI) said, "There are currently 1.31 crore transactions per day through Aadhar and we can handle up to 10 crore transactions per day. We will soon be able to manage 40 crore transactions each day.