Last year the Demonetization hit the Indian economy really hard, making it too difficult for the people to survive. In fact, it had turned India into the world’s fastest slowing economy wiping out a huge percentage of cash flow overnight. However, this is when mobile payment systems came into existence and most companies like Paytm, Freecharge, etc. were the clear winners here since people had no option but to go for these portals. And now even after the whole demonetization fiasco is over with, mobile wallets are still being used by people on a large scale in comparison to what it was earlier.
On the same lines, we also saw some UPI-based payment system emerge soon after that. And now it looks like we will be seeing something new called the Aadhaar Pay. Aadhaar Pay is the new name which most of you are not familiar with. Finance Minister of India Arun Jaitley announced to launch Aadhaar Pay soon in India. But what is Aadhaar Pay? Is it a mobile wallet, a payment system? If you have questions like these, then you are at the right place, since we will try to break down Aadhaar Pay and tell you what is it all about.
What is Aadhar Pay?
To begin with, Aadhaar Pay is simply an Aadhaar-enabled payment system which merchants can use to receive payment from the customers. Aadhaar Pay works on Android platform, and it is something which merchants alone are supposed to install. This will allow customers to shop without the need of any specific instrument for payment which makes the whole experience safe and easy to handle. There are no mobile wallets involved here and no other custom payment system to go through.
How to use Aadhaar Pay?
As mentioned earlier, the Aadhaar Pay app has to be installed by the merchant, and then they have to register to start using it. Once the registration is done, the particular merchant’s mobile has to be linked to Aadhaar’s biometric reader for authentication. Once the merchant is done with this setup, he/she can start accepting payments from the customers. Now you as a customer, in order to make a payment, all you have to do is –
- Enter your bank’s name followed by your Aadhaar number.
- Next, authenticate using your fingerprint on the biometric sensor to make the payment.
That’s it. It is as simple as that. However, do make sure that your bank account is linked to your Aadhaar number before attempting to do this, otherwise, it won’t work.
One of the main advantages of using this payment method instead of going for any other is that the customers who are trying to make the payment, don’t need to have a credit/ debit card, a mobile wallet or in fact, not even a mobile phone. All you have to do is, simply walk into a store which accepts Aadhaar pay and then enter the details and authenticate to get it over with. This is something which will be used by a lot of users especially in rural areas where the access to the internet or mobile phones is still very less. With that said, let us know what do you think about the Aadhaar Pay and would you be interested in using it once it launches.