Aadhaar Payment App: Digitizing Your Payments, How It Works?

Demonetization has taken people to stand in long queues to get money. Well, the government is coming out with a digital payment system.

Unlike conventional digital payment system, which has a risk of getting stolen, this has a different approach.

What Is Aadhaar Payment App?

This uses consumer’s Aadhaar card details and their linked bank account details, along with their biometric scan and authenticates transaction. This also sums up that, people no need to download wallet apps and make payments or transaction directly using their Aadhaar card number with the help of Unified Payment Interface (UPI).

How Does It Work?

Well, you must have received notifications (some or the other way) to connect your Aadhaar card to your bank accounts. Yes, the government has planned this way earlier to digitize your payment. Now, the Aadhaar Payment app has two sides to it, one is the merchant’s app, and the other is consumer app.

Talking about consumer app is almost similar to any other mobile wallet service, but in here your Aadhaar card is linked for quick transactions. However, the merchant app is what stands out. The merchant version of Aadhaar Payment app does not require the consumer to install the app in their phone’s to make payments (just like the mobile wallets service like Paytm, Mobikwik, Freecharge and so on).

All merchant has to have is Android smartphone and a biometric scanner to Aadhaar Payment app to work. As and when a consumer makes a purchase, all the consumer has to do is to share their Aadhaar card detail, which would automatically list down their linked bank account and the consumer can select the favorable bank and the authenticate using the biometric scanner.

Tweak.

If a consumer has two accounts in the same bank, when you link your accounts with Aadhaar, you will be asked to choose a primary account out of the two for the default Aadhaar card-based transactions.

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The Aadhaar Payment app aims to eliminate the fee payments for service providers like card companies such as MasterCard or Visa, which are stopping merchants and consumers in switching to digital payments.

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