As per the report, the bank has been launched after three-months of trial involving 1500 merchants across 16 states.
"The returns for the bank will also be in terms of new customer additions through the merchants who will adopt Aadhaar Pay,"said Lall.Merchants will have the opportunity to become banking correspondents and can open bank accounts, accept payments and withdraw cash on behalf of people, he added".
The amount will directly debit from the bank account.
"It's a new paradigm, a quantum leap for banks". The IDFC bank launched the India's first bio-metric Aadhaar Pay App based on the digital platform.
The service is going live just as Samsung launches its mPayment service in the country, suggesting that the latter and similar platforms like Apple Pay could face a particularly challenging market in India. It won't even need mobile phones or mobile wallets. "However, the limit on Aadhaar Pay must be decided among the banks or by Indian Banks' Association (IBA)". The app is expected to eliminate the need for debit or credit cards for making payments.
In December previous year, we had reported the introduction of Aadhaar Pay, which has been designed for cashless, pinless transactions.
Besides, they are going to spend Rs 25 crore to procure 1,00,000 biometric devices, and give them to small merchants for spreading its usage.
In order to use the Aadhaar Payments app, the merchant needs a smartphone with installed IDFC Aadhaar Pay App and bio-metric device to read data. "All one needs is to get the bank account number linked with Aadhaar".
The IDFC Aadhaar Pay app was developed by IDFC Bank "under the guidance" of the Ministry of IT, NITI Aayog, Unique Identification Authority of India (UIDAI), and National Payments Corporation of India (NPCI). The Aadhaar bridge payment system is used for the transaction process.