Over the past decade India has become a hub for startups as well as a number of large multinational co-operations. India is buzzing with new ideas, innovation and technology thus making it the world’s third largest startup hub.
After the demonetization decision on November 8, 2016 India has taken its first major steps in becoming completely digitized. But this sudden decision has the Indian economy finding various digital methods for payment.
Digital India In the Making
Digital payments like net banking, mobile wallets like PayTm, MobiKwik etc. have flourished, so have the use of debit cards, credit cards etc. The establishment of Digital India is unique process for the whole world, this is mainly due to the country’s large population and also due to Aadhaar.
Aadhaar makes India the only country to issue 99% of its adult population with biometric-based digitally verifiable identity. About 1.09 billion in 1.25 billion of India’s population possess adhaar.
On 30th December, 2016 Prime Minister Narendra Modi launched BHIM (Bharat Interface for Money), a digital payment platform and he went on to say that soon Indians can use just their fingers for making digital payments. This was made reality earlier this month when IT Ravi Shankar Prasad and Union Minister for Electronics paid a tea vendor in Patna using this digital payment method.
Things needed for an Adhaar enabled payment
For receiving an Adhaar enabled payment, a merchant must have
- A bank account that is linked to their Adhaar number
- A smartphone
- A small finger print scanner that can be easily attached to their smart phone
A customer just needs his/ her finger print to make the payment; they don’t even need their smartphones, they just need to link their bank accounts with their Adhaar cards.
How is the payment done?
- When a customer needs to pay he/ she must firstly provide the vendor with their aadhar card number and the name of the bank whose account it is linked with.
- The given information as well as the amount to be paid is then entered into the smartphone by the vendor.
- Then the customer is asked to scan his/ her finger print on the scanner attached to the smartphone.
- In matter of seconds the finger print is scanned and the Aadhaar API will inform the vendor if the traction has been authenticated or no.
- After authentication the amount from the customer’s account is placed into the vendor’s account.
- If the mobile numbers of the customer and vendor is linked with their Adhaar then they will also receive SMS regarding the transaction.
Benefits of Adhaar payment
- Easy and simple method of payment that doesn’t require you to carry your wallet, smartphone or debit cards.
- Will make India cashless and push it successful into a digital world.
- Will make payments easier as well as fraud free.
- No more fear of others misusing this method of payment as the bank account is linked to their personal biometric and will be authenticated only after your finger print confirms your identity.
- Farmers and other commoners will have a much easier time selling their produce.
And much more!
This revolutionary method of payment has the potential of making India economical stable and establishing itself as a super power. 🙂