Away With Transaction Fee, Debit, Credit Cards

Aadhar Payment App – “IDFC Aadhar Pay” for Merchants

NEW DELHI:  An Aadhaar-based app has been launched that will not only do away with the need to carry debit or credit cards, but also cellphones. For the consumer, what could be the most attractive feature of Aadhaar Pay is that it does not impose any transaction fee on the consumer. The android app — launched by IDFC bank — needs to be carried only by the shopkeeper. All the consumer needs to do is carry her Aadhaar number and mention the bank.

“There are no MDR (Merchant Discount Rate) charges here,” said Amitabh Kant, the Chief Executive Officer of think-tank NITI Ayog, who has been instrumental in pushing the Narendra Modi government’s less cash drive. The app is expected to popularise cashless transactions in small towns and rural areas, where consumers mostly do not have smartphones or debit and credit cards.

How will Aadhaar Pay work?

A shopkeeper must download the app on a smartphone that is connected to a biometric or fingerprint scanner. A customer will have to feed in his or her Aadhaar number and select a bank for payment.  Biometric data will be scanned by the reader as the password.

How safe is Aadhaar Pay