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Aadhar Acquires The Position As a Unique Innovation In The Digital Economy Of India

India is considered as one of the best countries for the beginning of any startup. The survival over here for the small organization is easy and it can come up with new innovations and technologies to establish its strength and good-will in the market. From last few decades, India has come out to be one of the biggest hubs for the startups as well for the large multinational corporations. The country has been listed out as the third leading hub for the startups.

India decided to take its first major step towards becoming a digitized economy at the time of demonetization on 8th of November, 2016. With this immediate and all of a sudden change, various new methods of digital payment came out in the market. Different payment techniques have flourished out like net banking and different mobile apps like PhonePe, PayTm etc. this process of digitization established by India is unique across the whole world. The major reason behind this is the population of the country and of course the Aadhaar.

With the help of Aadhar, 99% of the adult population is having a verifiable identity which is biometric-based and out of the total population of the country which is 1.25 billion, around 1.09 billion are having Aadhar.

Essentials needed for payment via Aadhar

If a person wants to receive payment through Aadhar, following are the things he or she must possess:

  1. A Smartphone which is able to work with apps.
  2. A bank account which should be compulsorily linked with the Aadhar card.
  3. A fingerprint scanner which can be attached simply to the Smartphone they are having.

If a merchant is having all these things, he can directly receive the payments via Aadhar. The customers just have to give the fingerprints and have their bank accounts linked with the Aadhar.

Aadhar payment app

Steps to make the payment

In order to make the payment, a customer needs to follow these simple steps:

  • Whenever payment has to be done to any of the vendors, it is compulsory to provide the Aadhar number along with the bank name whose account is linked with the Aadhar number.
  • The vendor will then enter the amount that has to be paid by the customer in the Smartphone.
  • Then the vendor will ask the customer to scan the finger via scanner which is available along with the vendor’s Smartphone.
  • Within few seconds, scanning of the fingerprints will be completed. Then, the API of Aadhar will provide the vendor with the information whether the user is authenticated or not.
  • Once the authentication process is completed, the amount will be deducted from the customer’s account and credited to the vendor’s account.
  • If accounts of both customer and vendor are linked with the Aadhar, an instant message will be sent to their mobile once the transaction is done.

Benefits associated with the Aadhar payment

There are numerous benefits of making payment via Aadhar. Have a look at them below:

  • You need not carry any cash with you and hence there is no theft risk associated.
  • If you have linked the Aadhar with the bank account, there is no requirement of carrying stuff like bank cards or Smartphone for the payment.
  • Aadhar has been able to make the whole India cashless and thus it’s a major move towards digital India.
  • There is no fear that the amount will be misused as the bank account is linked and that too via the biometric authentication.

Aadhar payment has brought a new revolution in the economy of India and has the ability to stabilize the economy of the country.