Government’s another step toward Cashless India – NPCI and IDFC Aadhaar Payment App

To ensure the success of demonetization, minimize the corruption rate, and eradicate increase in black money, Government has launched a new Payment app for Android mobile phone. This App is called Aadhaar Payment app that can be used by merchants to accept payments from their customers without any debit card, credit card, BHIM app, or a wallet.
Let’s explore this Aadhaar Payment app, its benefits, how it works, and how to download it.

Development of Aadhar Payment app

Pradhanmantri Sh. Narendra Modi Ji has been doing a great job with a vision to eradicate the sources of black money and corruption. When people transact more into cashless ways like Aadhaar Pay app, credit card, debit card, wallets, demand draft, cheques, etc. they will not need to carry cash. Now, when they do not hold cash, the blockage of money will not be there. Moreover, the money will keep traversing the market in digital form, adding value to the growth of the nation while forcing big fishes to deal in digital money than cash. When they do not have all the money being deposited directly in their bank accounts, they will not be able to hide cash in their homes. And, finally, they will have to pay taxes, which they were hiding for years. With more tax coming in our government will be able to do more for the goodwill of the people of India.
With this initiative, the government has provided merchants with a new medium to accept payments in a cashless mode. We should say thanks to NPCI and IDFC bank to get this accomplished. It will help those merchants who were losing sales because their customers did not have a debit card, credit card, or payment wallet. Now, they can accept payment using aadhar card of their customers.

Benefits of Aadhar Payment App

Before we go ahead and tell you the process of downloading and using this new payment app of the Indian government, let’s have a look at the benefits of this app for merchants and end users:
  1. No MDR – It is a charge that merchants have to pay to the banks against the services they use. For example, debit card and credit card.
  2. No need for a smartphone or any other phone – With this App, the buyer does not need to carry any smartphone or any other phone. For example, in BHIM app you need a phone, but in this Aadhar Payment app, there is no need for any phone.
  3. Security – This app is secure because it uses biometric identification to process the payment. It means only Aadhaar card number is not enough to make payment using this app. The merchant will scan the thumb/fingers of the Aadhar card holder using a Biometric Scanner. This scanner will capture and match the fingerprints of the card holder with the fingerprints in the record of the government. If the records are matched, the payment will be successful else not. So, in the case someone has stolen your aadhaar card and felt that he can use it for a fraud, he cannot do that.
  4. No POS – The merchant does not need a POS machine. They just need to download Aadhaar Payment App of IDFC bank from Google Play store, link it with a biometric scanner, and start using it. Yes, you first need to register for IDFC Aadhaar Payment App, which can be done by filling the information in the app.

How Aadhaar Payment App of IDFC and NPCI Works?

The working of this payment app is quite easier. You need a few things to get this work for you, and those things are:
  1. You will need an active Internet Connection.
  2. Aadhar Payment App can be downloaded from Google Play Store on your Android Smart Phone. Or, go to IDFC Bank Site by clicking here and Apply for a New account. The bank shall send you the URL to download the App.
  3. An STQC Certified Aadhar Biometric reader.
  4. Once you have these two things, get an account registered for Aadhar Payment App by following the steps given on the app or by contacting the IDFC bank.
  5. Once the above steps are fulfilled, ask the buyer to show his/her aadhar card. The aadhaar card of the customer must be linked with a bank account to complete the payment.
  6. Enter the Aadhar Card number in the app, select the related bank, and enter the payment amount.
  7. Now, use the biometric scanner to verify the identity of the buyer and complete the payment.
  8. On successful verification, the amount mentioned on the app will be deducted from the customer’s bank account and will be transferred to the merchant’s bank account.
See below Figure from IDFC Bank Site to understand more easily:
Image Soruce –

How to Download Aadhaar Payment App?

Limitations of Aadhar Pay App

  • It cannot be used for money transfer
  • It can only be used for payments up to 10000 rs
  • It needs an active internet connection at the merchant site

As you see, the new Payment App of Indian Government, which is developed by IDFC bank and NPCI looks very promising. You can just carry your aadhar card with you and can do shopping from the store or shop that has this app in action. Today, maximum stores in shopping malls provide users with the greatest payment options, so you can check with them if they are accepting payments with Aadhaar Payment App of IDFC bank as well.

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