IDFC Bank has launched an app called Aadhaar Pay for merchants across the country which lets customers make payments using their Aadhaar number. It’s India’s first Aadhaar linked cashless merchant solution launched at an event in New Delhi.
The bank has developed the app-based complete biometric payment solution for merchants under the guidance of of the Ministry of IT, NITI Aayog, Unique Identification Authority of India (UIDAI), and National Payments Corporation of India (NPCI).
Merchants can download the IDFC Aadhaar Pay app on any basic smartphone via a link sent through SMS. To get on-board the new payment system, merchants will have to apply for the same and submit their KYC documents as required. You will then be sent a link via SMS to download the app and an STQC certified Aadhaar biometric reader. To start receiving payments, you have to download and install the app and synchronize it with the biometric reader.
Customers will have to enter their Aadhaar number after selecting their bank’s name on merchant’s phone to make payments. The final step is to authenticate your transaction via your fingerprint. You don’t have to carry your smartphone or your debit/ credit card to make e-payments. You just need your Aadhaar number and your hand to get going with the transaction. The payment solution will be useful in rural areas.
With this new payment system, merchants will not have to pay any transaction fees as the app is a part of AEPS payment railroad having no merchant discount rate (MDR) attached to it. Bank’s aim is to reach out to 50,000 to 75,000 merchants across the country in next two years.
“By using the fingerprint as digital identity, it empowers even individuals without a phone to pay electronically for small value transactions. The convenience of Aadhaar Pay is expected to encourage a behavioural shift towards digital payments,” said IDFC Bank’s founder MD & CEO, Dr. Rajiv Lall.
