Aadhaar Pay to be launched soon: What does it mean for you?
Aadhaar Pay app enables consumers to pay without any physical payment instrument
An Aadhaar-enabled payment system will be launched soon, finance minister Arun Jaitley announced in his Budget speech today for financial year (FY) 2017-18. Aadhar Pay is a merchant version of Aadhaar-enabled payment system. Aadhaar Pay app enables consumers to pay without any physical payment instrument. It runs on the Android platform and has to be installed by merchants.
To use it, merchants need to first download the Aadhaar Pay app and then register to start using. After registration, the merchant’s mobile phone needs to be linked to a Aadhaar biometric reader. Once the merchant has the infrastructure in place, the consumers can start transacting. To make a payment, the consumer has to just enter her bank’s name and Aadhaar number. The fingerprint is the password for the transaction. To use this service, the customer has to first link her bank account to her Aadhaar.
Jaitley said Aadhaar Pay will be specifically beneficial for those who do not have debit cards, mobile wallets and mobile phones. A Mission will be set up with a target of 25 billion digital transactions for FY2017-18 through Unified Payment Interface (UPI), Unstructured Supplementary Service Data (USSD), Aadhar Pay, Immediate Payment Service (IMPS) and debit cards. To use UPI, you need to have an Android smartphone, a bank account, internet connection and a registered mobile number with the bank. Since UPI runs on the IMPS platform, the transactions happen instantly.
USSD allows you to do electronic payment without an app or a smartphone. You can do it on mobile phone. National Unified USSD Platform (NUUP) allows you to do basic banking transactions such as send and receive money, check account balance and get a mini statement. To use this service you need to register your mobile number with the bank*99#. With immediate payment service (IMPS), the money gets transferred instantly. This service is available 24x7. When you initiate a fund transfer via IMPS, the initiator bank sends a message to IMPS, which debits the money and sends it to the receiving account. The maximum that you can send is Rs2 lakh.
Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
MoreLess
First Published:1 Feb 2017, 02:25 PM IST
- Top Gainers
- Top Losers
- 52 Week High