As five banks are ready to launch the much publicised Aadhaar Pay, the payment system is expected to be introduced soon.
While State Bank of India (SBI), Syndicate Bank, IndusInd Bank and IDFC Bank are ready for the debut, Bank of Baroda and Punjab National Bank (PNB) are also in the process of launching Aadhaar Pay at the earliest, a report published in The Economics Times said.
The government has asked all banks to launch on the platform by March 31, the report added.
What is Aadhaar Pay?
Aadhar Pay is a merchant version of Aadhaar-enabled payment system. It is an app which will enable merchants to receive payments through biometric authentication of the customer, provided their bank accounts are linked to their Aadhaar number.
What is its advantage?
Aadhaar Pay app enables consumers or customers to pay without any physical payment instrument like credit or debit card, or even a smartphone. It runs on the Android platform and has to be installed by merchants.
How is it used?
To use Aadhaar Pay, merchants need to first download the app and then register. After registration, the merchant’s mobile phone needs to be linked to a Aadhaar biometric reader.
Next to pay a merchant who has the infrastructure in place, the consumer has to enter his or her bank’s name and Aadhaar number. The customer has to also link her bank account to her Aadhaar to use the Aadhaar Pay system.
The fingerprint is the password for the transaction.
What is causing the delay?
The Economic Times quoted an official as saying that one of the reasons behind the delay in the launch is that detailed specifications on the point of sale machines were not available.