It has been almost three months when Aadhaar Pay app was first introduced. Soon people started searching how to download aadhaar pay app. But till now, no such app was seen in app stores like Google Play. Now IDFC Aadhaar Pay app has been launched.
IDFC has become the first bank to launch Aadhaar Pay app. If you are unaware of AEPS (Aadhaar Enabled Payment System), then let me explain it a bit.
Aadhaar-enabled payment system can replace debit, credit cards which many people use for cashless transactions. People can now pay using aadhaar card. It means you don’t need to have plastic money or e-wallets anymore. All you need is an aadhaar card to make payments.
How it works?
UIDAI introduced the Aadhaar Pay App some three months back. But that was just a concept. This concept was to be implemented by every bank. This time IDFC bank has become the first one to implement this system and they have come up with IDFC Aadhaar Pay app.
Using IDFC Aadhaar Pay app merchants can accept payments which will be cashless, cardless and pinless.
Here’s the general use-case of any Aadhaar Pay app system:
- To accept payments, merchants needs to register on the app using the aadhaar number. The registration needs to be authorised using the fingerprint of the merchant.
- Now to accept any payment from the customer, the merchant needs to enter the customer details which include customer aadhaar number, customer bank name, and amount to be paid by the customer.
- An option to continue or to reject the payment will be provided. Once chosen to proceed, the payment needs to be authorised using the customer’s finger print.
- After successful authentication, the amount will be transferred from the customer’s aadhaar linked bank account to merchant’s aadhaar linked bank account.
Watch this video to get an idea of its working:
Here’s a commercial by IDFC Bank which reveals their IDFC Aadhaar Pay App
How to Download & Use IDFC Aadhaar Pay App?
To make payments using this system, customers don’t require any app. But if you are a merchant and want to accept payments then you definitely need this app in your smartphone connected with STQC (Standardization Testing and Quality Certification) certified finger-print sensor.
The merchants who register for this system will receive an SMS with instructions to download the app.
Here’s how the whole process works:
- Merchant registers for IDFC Aadhaar Pay.
- A mobile phone connected to STQC certified sensor turns merchants outlet to IDFC Aadhar Pay merchant point.
- Customer needs to enter his/her bank name and aadhaar number to make payment. After entering the payment amount, the payment will be authorised by the customer’s finger print.
- Customer walks away after making payment without cash, without card, without any pin or password!
Some Limitations of this app
The app which will be available for download is said to have some limitations like it requires working internet connections. Also the app can’t be used to transfer money or get immediate information on refunds.
Earlier reports suggested that, “SBI and five other banks are running a pilot program for testing aadhaar payment system. These banks are Syndicate Bank, IndusInd Bank, IDFC Bank, Bank of Baroda and Punjab National Bank.
Among all these banks IDFC bank has emerged as the first bank across the country to introduce Aadhaar Payment Infrastructure by the launch of IDFC Aadhaar Pay App.
It is clear that aadhaar payment system makes cashless transactions easier for the customers. Are there any benefits to the merchant?
Yes. The biggest benefit is that the merchant doesn’t need to buy those costly micro-ATM or POS machines. Apart from this, as this being a new AEPS payment railroad, IDFC Aadhaar Pay has no merchant discount rate (MDR) attached to it and can provide the service to customers without having to pay the bank a transaction fee.