Government is all set to roll out Aadhaar Payment app which enable people to transact anywhere in India with single finger print scan. Currently the system is said to be deployed in small set of villages for pilot and roll out is expected to happen any time this week.
How it works?
All the merchants who will accept payments are required to download this app and link it with finger print scanner. When ever a user intends to pay will have to give a finger print authorization and it will auto debit money from the bank account linked to his aadhaar.
End of POS?
Point of sale machines are the only means to do digital transactions by using debit and credit card, but companies like Visa and master who issue them are charging money to the end user between 0.5 – 2.5% depending on transaction type. And government is not able to encourage people because of charges levied. With the launch of this app these charges will be zero and the moment of digital India will be much closer to the reality.
Planned Move By PM Modi?
Though the execution of demonetization has failed to an extent because of officials and irresponsible bank managements. All the series of initiative to digitize the economy seems to be planned in advance by Prime Minister Modi.
Challenge to Fintech Companies
If Aadhaar app is successful it will thrown a challenge to Digital wallet startups like PayTm, MobiKwik, Freecharge etc apart from POS companies like Mswipe, Payu etc. Their survival will become tough and they have to find alternative means of digital transactions like Per-peer payments etc.
Though it is expected to launch on 25th December, App is not available on google play store. Will will update the launch link as soon as it is available for you android phone. Read more Business News.