Aadhaar Payment App: Benefits, Requirement and Comparison

It is the easiest method of payment. It is the cheapest method of payment. Everyone of us can use this payment. Be it rich or poor. Be it a person with phone or without phone. Whether it is city or small village, this payment method is mother of all the payment methods. Yes, the Adhaar Payment App is going to be the most revolutionary Money payment methods.  In this Post, I will tell you about this Adhaar Payment app. I will tell you that how can 40 crore people of India can use this. I will also tell you that how can you pay without the phone. Let us explore

What is Aadhaar Payment App

There are lots of payment apps in the market. These are the UPI apps, SBI Pay, Paytm, Phonepe, Freecharge, mobile wallets etc. But, the Adhaar Payment App is special. It will make our life very easy. Can you imagine such an app which don’t require a mobile phone?

Yes, you can pay through the Adhaar Payment App without phone. It is possible because you the customer does not require the app. The merchant or a person, who want money, have to arrange a smartphone, app, etc. The payer don’t require anything. Isn’t so good !! In fact, this app is made for the merchants and shopkeepers. It is not for you, You would only enjoy its benefits.

The Adhaar Payment App uses your fingerprints for the authentication. On the basis of this authentication, the money is paid from your Aadhaar linked account.

Benefits of Aadhaar payment App

Now you are aware about the ease of the Adhaar Payment app. It is easy to customer as merchants need to arrange for the smartphone, App and fingerprint scanner. Let us compile the benefits of the Adhaar Payment app.

1. Customers need not to have an android phone or any other technology to make payments.
2. No service tax or any other extra charge on the payments using Aadhaar payments app.
3. There is no need to carry debit card or credit card.
4. No need to remember PINs, MPINs and passwords.
5. Instant Payments through aadhaar bridge system this is similar to Aadhaar Enabled Payment system (AEPS).
6. Affordable payment solution for merchants as well as customers.

Requirement For This Method of Payment

The Adhaar payment app does not require any gazette and physical things from the customer. However, a customer should remember his/ her Aadhaar number and keep its finger clean. That is enough from customer’s side.

Customers Requirement

• Your Aadhaar number
• A bank account linked with Aadhaar
• Clean Fingers

Merchants Requirements

On the other hand the merchant have to make more arrangements. These are the requirement for the person who want payment.

• Smartphone
• Reliable Internet connection
• Aadhaar Payment App
• Fingerprint scanner
• Bank account

 How does it work?

For making a working Adhaar Payment App system you have to go through the following steps.

1. Merchants or shopkeepers have to install Aadhaar cashless merchant app in their smartphones.
2. Get a fingerprint scanner and connect it with the mobile phone. It can be done by using simple USB cable. You can also but fingerprint scanner online. The price starts from Rs 2000.
3. At the time of payment, customers will feed their aadhaar number into the app.
4. The app will show all the linked bank accounts. You have to choose the desired bank account. This option comes only if you have more than one Aadhaar linked bank account.
5. Put your finger on the fingerprint reader screen. Your fingerprint will work as a password for the payment. The reader would transmit your fingerprint data to the app.
6. The app tallies your fingerprints with the available data in Aadhaar database. If it matches, the NPCI would get the go ahead message. The NPCI transfers the money from one account to another. To facilitate this transaction the Aadhaar bridge payment system is used.

The UIDAI and NPCI both plays their roles in this payment.

 

Limitations of Aadhaar Payment App

• Aadhar payment App makes the payment very easy for the customer, but merchants has to bear extra cost of fingerprint scanner. However, it is one time  expense and cheaper than existing POS machine. The price of fingerprint scanner starts from Rs 2000.
• You can’t use this system of payment for person to person transfer as fingerprint scanner is necessary.
• The app works on internet, it makes this system worthless in no coverage area or weak coverage.
• The unreliable internet connection can be an irritant. It can also turn into a headache.

Aadhaar Payment App Vs UPI Apps

The comparison of Adhaar Payment app with the UPI apps are natural. Both of these apps transfers money instantly. The mechanism of both these apps are also similar. However, Both of these apps are better to each other according to the situation.

When it is the case of person to person fund transfer, the UPI apps are better as this doesn’t require fingerprint scanner. Smartphones are common and only payer requires this app.

On the other hand, at merchant shop, the Adhaar Payment apps would be a better option as it is swift and does not require a smartphone or internet from the customers end. Aadhar Payment app has the potential to be more  popular in rural area.

Future of Aadhaar payment app

Debit/credit cards are considered essential for a cashless economy. But these are not praised by customers and merchants. The main reason behind the failure is their charges. The merchants used to charge around 2-3% with the card payments. Card companies like mastercard and Visa also used to charge 2% of the amount. But with Aadhaar Payment app, you do not to worry about any charges. The payments with Aadhaar Payment app do not have any extra charges. Hence this method is supposed to be accepted broadly by merchants as well as customers.

The officials of the government said that almost 40 crore Aadhaar numbers have already linked to bank accounts. The number is equivalent to the half of the adults in India. The aim of the government is to link all bank accounts with Aadhaar by March, 2017. If it goes well, the India will see a boom towards a cashless economy.