The government on Sunday will launch ‘Aadhar Payment Application’ which will eliminate the fee payments for service provider companies like Mastercard or Visa. This Aadhar based application will also remove the dependency on plastic cards for cashless economy.
Post demonetisation, there have been talks of cashless economy and payment via digital medium for all basic utilities. Critics have also raised questions on insecure digital payment and cyber threats to online payment mode. This app would silence the critics too.
The lack of connectivity made it impossible for millions of merchants in the hinterland to adapt the card payment methods.
HOW DOES IT WORK?
# Merchants must download the Aadhaar cashless merchant app on their smartphones
# The smartphones need to be connected a biometric reader, which is currently available for Rs 2,000.
# The customer will feed his or her Aadhar number into the app.
# Select the bank through which the transaction has to take place
# The biometric scan will work as a password for the transaction to be authenticated.