New Delhi is working on a biometrics-backed payment system that will be connected to a user’s unique ID number, or Aadhaar.
An initial rollout of the system would work with the Bharat Interface for Mobile (BHIM) app with Aadhaar.
However, 14 banks have also come on board for Aadhaar Pay and the government is in talks with other banks too, Minister for Electronics and IT, Ravi Shankar Prasad said on Friday.
“We are going to start Aadhaar Pay. With this, people will not require to carry their phone for payments. They can visit any merchant, share their Aadhaar number and verify themselves using biometrics to pay and receive money,” Prasad said.
Earlier this month, the Unique Identification Authority of India said merchants that use biometrics for digital transactions should be given incentives.
The UIDAI likens the situation to the country’s business correspondent model, a financial inclusion initiative which allows banks to provide service at people’s doorstep through the use of third party services. A business correspondent is a representative authorized to offer services such as cash transactions where the lender does not have a branch.