New Delhi: To encourage poor and illiterate people in rural areas to make digital payments,the government is promoting Aadhaar Pay which ensures financial transactions by just using fingerprint.
Aadhaar Pay, which is merchant version of the already in use Aadhaar Enabled Payment System (AEPS), will become an alternative for all online and card transactions which require password and PIN.
Through this app, merchants can take cashless payments from a customer who is only required to give his Aadhaar number, name of bank from where the money is to be deducted, and finger print for authentication.
The app works on any android-based phone, even a lost cost one, with an attached finger biometric device said CEO AB Pandey, Unique Identification Authority of India (UIDAI).
In order to popularise the use of Aadhaar Pay among merchants in rural areas, the government has asked banks to enrol 30-40 merchants per branch so that they are able to take cashless payments from customers.
While the biometric device costs about Rs 2,000, the government is working on an incentive model so that the cost of the device is paid off over time and the merchants are encouraged to use it.