The government is working to popularise Aadhaar Pay in order to promote payments among the poor and the illiterate.
Aadhaar Pay, which is merchant version of the already in use Aadhaar-enabled payment system (AEPS), will become an alternative for all online and card transactions which require password and PIN.
Aadhar Pay works on any Android-phone, even the low cost ones with an attached finger biometric device, according to AB Pandey, the Unique Identification Authority of India (UIDAI) CEO.
The app facilitates merchants to take cashless payments from a customer who is only required to give his Aadhaar number, name of the bank (from where the money is to be deducted) and finger print for authentication.
In a bid to popularise the use of Aadhaar Pay among merchants, the government has asked banks to enroll 30-40 merchants per branch to enable them to engage in cashless transactions.