Q. Which bank has launched India’s first biometric-based payment system, Aadhaar Pay?
IDFC Bank Ltd has launched India’s first biometric-based payment system, Aadhaar Pay.
Aadhaar Pay is a unique solution that enables merchants across the country to facilitate cashless purchases for customers with just their thumb and Aadhaar number.
In this solution, a customer needs an Aadhaar number and Aadhaar linked bank account.
A merchant needs first to register for IDFC Aadhar Pay by providing several details including the bank account to where the payment will be collected. Once registered, the merchant will install Aadhaar Pay in its smartphone and get STQC-certified biometric scanner to accept payments.
A customer makes payment by scanning its thumbprint and providing Aadhaar authentication such as Aadhaar number and the bank from which the payment is to be made. The biometric scanner does the verification. Once authenticated the amount of transaction would deduct from the customer’s Aadhaar-linked bank account and add to the merchant’s registered bank account.
IDFC claims the service has been launched after successful pilots across 16 states in a span of three months.
About IDFC Bank:
IDFC Bank Ltd.(Industrial development finance company) is a private Indian banking company with headquarters in Mumbai that forms part of IDFC, an integrated infrastructure finance company.
IDFC which was founded on 30 January 1997 with its registered office in Chennai began its operation as a financier of infrastructure projects.
In 1999, it was notified as a public financial institution.
In 2000 it registered with SEBI as a merchant banker.
In 2010, IDFC became first NBFC (Non-Banking Finance Company) to be classified as Infrastructure Finance Company.
In 2013, IDFC applied for the banking license and in 2014 Reserve Bank of India (RBI) granted an in-principle approval to set-up a bank in 18 months.
IDFC received a universal banking license from the Reserve Bank of India (RBI) in July 2015.
The bank started operations on 1 October 2015, though Prime Minister Narendra Modi formally inaugurated IDFC Bank on 19 October 2015.
Dr. Rajiv Lall is the Founder, MD & CEO of IDFC.