Aadhaar Pay: The Debit and Credit Card Killer

Last updated on 4 Jul, 2017 | 2 comments

Aadhaar Pay

Bhim Aadhaar Pay is a biometric-based payment system launched by Prime Minister Narendra Modi on 14th of April, 2017. This is a much anticipated future payment system in the economic history of India. In fact, experts are foreseeing the abolition of

debit, credit and ATM cards from the Indian economic system. Now all you need is a fingerprint, that’s it. It is obvious that the transaction cultures are going under a severe makeover. Let’s find it how?

What is AADHAAR PAY?

AADHAAR PAY is a smartphone application for merchants through which payments can be made based on Aadhaar enabled payment system. The

merchants can receive payments from customers’ bank account through biometric authentication.

The Background

Though cashless digital transactions were not a new concept in India, it got the limelight after 8th November 2016 when Prime Minister Narendra Modi announced the demonetisation of the large value currency notes. This demonetisation period witnessed the emergence of many new and established digital wallets and other smartphone applications to perform cashless electronic transactions. Commensurate

with the market demand, Govt. of India decided to launch its own BHIM UPI app for doing transactions digitally. This app helps in executing monetary transactions from one bank to another. In this system, the payer has to enter bank details of the payee to make a payment. Extending this system further the Aadhaar Pay app has been introduced where a merchant can receive payment through a fingerprint scanner.

How Aadhaar Pay Works?

For a merchant or a shopkeeper to receive payments through Aadhaar Pay all they need is a smartphone, a fingerprint scanner, and a stable internet connection. The process follows this way:
Step 1: Install the app on the smartphone used for doing transactions.
Step 2: Get a fingerprint scanner and connect it with a USB cable to the phone where the app is installed.
Step 3: At the time of payment the customer has to input his/her 12 digit Aadhaar no. into the app.
Step 4: The app will show the Aadhaar linked bank accounts, from where the customer has to choose the bank account from where he/she likes to pay.
Step 5: The app will ask for the fingerprint of the customer, which is same as PIN or password asked while making payments through debit or credit cards.
Step 6: Once the fingerprint is tallied, the payment would be made and receipt would be generated.

Is AADHAAR PAY Secured?

According to the NITI Aayog, the Aadhaar Pay is a highly secured app which will use two main platforms – Aadhaar Payment Bridge (APB) and Aadhaar Enabled Payment System (AEPS). APB

will act as repository between the banks and the customers to provide a smooth flow of transactions, while AEPS will help in authenticating the online process.

Benefits of AADHAAR PAY

1. There is no need of any debit or credit card.
2. The customers need not have any smartphone to pay, unlike UPI apps.
3. The customer shouldn’t remember PINs or passwords to make payment, as fingerprints will do the work.

4. The merchants should not have to apply for and possess card swiping machine from banks.
5. The best part is no service tax or surcharge on the payment using AadhaAr payments app would be levied.

The Future

With the introduction of the Aadhaar Pay app, the roads are clearer for Aadhaar based cash withdrawals too, where the Aadhaar number will work as ATM card and fingerprint as the PIN. Of course,

the future ATM machines are also to be readied to accept Aadhar based payment instructions and to provide an environment of card less safe transactions.

Bhim Aadhaar Pay is a biometric-based payment system launched by Prime Minister Narendra Modi on 14th of April, 2017. This is a much anticipated future payment system in the economic history of India. In fact, experts are foreseeing the abolition of debit, credit and ATM cards from the Indian economic system. Now all you need is a fingerprint, that’s it. It is obvious that the transaction cultures are going under a severe makeover. Let’s find it how?

What is AADHAAR PAY?

AADHAAR PAY is a smartphone application for merchants through which payments can be made based on Aadhaar enabled payment system. The merchants can receive payments from customers’ bank account through biometric authentication.

The Background

Though cashless digital transactions were not a new concept in India, it got the limelight after 8th November 2016 when Prime Minister Narendra Modi announced the demonetisation of the large value currency notes. This demonetisation period witnessed the emergence of many new and established digital wallets and other smartphone applications to perform cashless electronic transactions. Commensurate with the market demand, Govt. of India decided to launch its own BHIM UPI app for doing transactions digitally. This app helps in executing monetary transactions from one bank to another. In this system, the payer has to enter bank details of the payee to make a payment. Extending this system further the Aadhaar Pay app has been introduced where a merchant can receive payment through a fingerprint scanner.

How Aadhaar Pay Works?

For a merchant or a shopkeeper to receive payments through Aadhaar Pay all they need is a smartphone, a fingerprint scanner, and a stable internet connection. The process follows this way:
Step 1: Install the app on the smartphone used for doing transactions.
Step 2: Get a fingerprint scanner and connect it with a USB cable to the phone where the app is installed.
Step 3: At the time of payment the customer has to input his/her 12 digit Aadhaar no. into the app.
Step 4: The app will show the Aadhaar linked bank accounts, from where the customer has to choose the bank account from where he/she likes to pay.
Step 5: The app will ask for the fingerprint of the customer, which is same as PIN or password asked while making payments through debit or credit cards.
Step 6: Once the fingerprint is tallied, the payment would be made and receipt would be generated.

Is AADHAAR PAY Secured?

According to the NITI Aayog, the Aadhaar Pay is a highly secured app which will use two main platforms – Aadhaar Payment Bridge (APB) and Aadhaar Enabled Payment System (AEPS). APB will act as repository between the banks and the customers to provide a smooth flow of transactions, while AEPS will help in authenticating the online process.

Benefits of AADHAAR PAY

1. There is no need of any debit or credit card.
2. The customers need not have any smartphone to pay, unlike UPI apps.
3. The customer shouldn’t remember PINs or passwords to make payment, as fingerprints will do the work.
4. The merchants should not have to apply for and possess card swiping machine from banks.
5. The best part is no service tax or surcharge on the payment using AadhaAr payments app would be levied.

The Future

With the introduction of the Aadhaar Pay app, the roads are clearer for Aadhaar based cash withdrawals too, where the Aadhaar number will work as ATM card and fingerprint as the PIN. Of course, the future ATM machines are also to be readied to accept Aadhar based payment instructions and to provide an environment of card less safe transactions.