Aadhaar Payment App—This is how online transactions will be made easier

New Delhi: Consumers can now heave a sigh of relief as Santa has brought in some respite on Christmas in the form of Aadhaar Payment App. After days of thinking over how to make your cash-less transactions easier and hassle-free, the government is now about to gift you a big surprise.

The Aadhaar Payment App, just as you must have thought is an application designed to facilitate your digital transactions with one click. According to BGR.com, it will help you carry out your digital payments which are Aadhaar linked. Launching on Christmas i.e December 25, 2016, let's get to understand how does it work:

Firstly, you will have to link your bank account with your Aadhaar card. What will happen is each of your bank accounts, linked with your Aadhaar details can facilitate the digital cashless transactions. To understand it better, you must know that it works on two levels—one is at the merchant level, and the other is for the benefit of the consumer.

The consumer app is like a regular mobile wallet, which is linked with your Aadhaar card in this case, that can be used to make quick online transactions.

However, the primary part of the Aadhaar Payment app is the merchant app. The main aim of the government is to eliminate the fee payments for service providers like card companies such as Mastercard or Visa, which are roadblocks for merchants in switching to digital payments.

The Aadhaar Payment app does not require the consumer to install that (merchant) app in their phone to successfully make payments, like how you need it right now in case of mobile wallets like Paytm, Freecharge etc.

However, the merchant would need a Android smartphone and a biometric scanner to get this going on the Aadhaar Payment App. The merchant needs to download the Aadhaar cashless merchant app on his smartphone which is then connected to the biometric reader.

So, when the consumer is making any purchase, all that he has to do is share the Aadhaar card detail, which would then automatically list down their linked bank account, and after picking up the bank account of his choice will process the payment from that particular bank, which will further be authenticated using biometric scans.

More importantly, if a customer has two accounts in the same bank, when you link both your accounts with Aadhaar, then a choice will be given to you for making one of it as your primary account, implying that whenever any Aadhaar-based transaction is carried out, it will be done from that selected account by default.

The primary aim is to enable digital payments, making it affordable to even those merchants in remote villages for whom it is still a big block.