India’s 1st Aadhaar Pay Based Biometric Payment System Launched By IDFC Bank


Aadhaar Pay

Cashless and digitalization mission of India has now reached a new paradigm. Using Aadhaar Pay platform, IDFC Bank has launched India’s first biometric payment system.

And the best part about this new cashless push is that payers don’t even need a mobile phone for making the payment. All one needs is an Aadhaar linked bank account and a thumb impression which shall act as a password.

Highlighting the importance of this launch, Aruna Sundararajan, secretary, Ministry of electronics and IT said, “Let me emphasise that its not just the launch of another app, its a paradigm shift.”

Aruna has actually described this as the ‘Aadhaar moment’ of India.

IDFC Bank’s Aadhaar Pay Platform: How Will It Work?

In order to use this system, the merchant needs a smartphone with the IDFC Aadhaar Pay app, and a device to read biometric data, which costs Rs 2500 as of now.

Say a person who doesn’t even have a mobile phone comes to that merchant and buys a product of Rs 100. Assuming that the buyer’s bank account has been linked with his Aadhaar card, he has to do the following the make the payment:

Step 1: Choose the bank from the Aadhaar Pay app by IDFC Bank

Step 2: Authenticate the amount, and give his biometric details via thumb impression.

Step 3: Payment directly debited from the bank account.

By far, this is hailed as the simplest, seamless and cheapest form of cashless transaction, as the buyer need not have any fancy wallet app or an expensive mobile phone.

The trinity of bank-mobile-Aadhaar is the foundation of this innovation.

Rajiv Lall, founder MD and CEO, of IDFC Bank said, “All one needs is to get the bank account number linked with Aadhaar. Basic banking services will come to those who even do not have basic mobile phones,”

Aadhaar Pay’s Journey Till Now

In December last year, we had reported the introduction of Aadhaar Pay, which has been designed for cashless, pinless transactions. Using biometric access like thumb impressions, and IRIS scan, which form the base for Aadhaar Cards, customers and buyers can use their Aadhaar-linked bank accounts for making seamless cashless transactions.

In February this year, we reported that biometric based Aadhaar Pay would be soon launched by SBI, IDFC and 3 other banks. In fact, Govt. had given a deadline of March 31st for all banks to launch their own Aadhaar based payments apps.

Meanwhile, since last year, IDFC Bank had been silently carrying on tests and experiments across 16 states, for implementing Aadhaar Pay platform, and by launching their apps yesterday, they became first Indian bank to do so.

As per IDFC, they are planning to bring on-board 50,000-60,000 merchants on their Aadhaar Pay platform in the next 2 years, and make this 1,00,000 by the end of 2020.

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.

Bankers are stating that such Aadhaar Pay based payment platform has the power to change the payment eco-system for ever in India. The data can be used to provide instant loans, approve credit schemes, run tests for home loans, auto-loans and more.

We will keep you updated as more details come in regarding the Aadhaar Pay regime, and how other banks are going to implement the same.

  1. Aam Aadmi says

    So what happens when a shady merchant saves my fingerprints for future use?

    1. Really Aam Aadmi says

      Shady merchant can also steal or copy your credit/debit cards, which has happened at lot of movie theaters or fast food joints

  2. Mud says

    WTF? I don’t follow this: “Say a person who doesn’t even have a mobile phone comes to that merchant and buys a product of Rs 100. …..

    Step 1: Choose the bank from the Aadhaar Pay app by IDFC Bank”

    …if he doesn’t have a phone, then how can he choose the app??!!

    1. TechFreak says

      By app means app in merchant phone not on buyers phone :P

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