Chennai-based payments technology company Financial Software Systems (FSS) has launched Aadhaar Pay. The product will be called FSS Aadhaar Pay and will be a biometric-enabled merchant payment acceptance system. Merchants can accept payments through an Android app downloadable on the Play Store. They will have to link their bank accounts to Aadhaar to receive money.
Customers, on the other hand, can pay using their Aadhaar-linked bank accounts. To make a payment, the customers will need to provide their Aadhaar number to the merchant and authorize payment using their fingerprints. The merchant app will come with a biometric device, which will be linked to the merchant’s the mobile phone for payment authentication.
FSS Aadhaar Pay will use India Stack APIs to authenticate payments. The company added that the product will be expanded to include UPI payments, BharatQR, wallet payments and mVisa in the future. FSS added that it will assist banks to on board the merchants and expects 5,00,000 merchants in the coming weeks.
Note that Mahindra Comviva, the VAS and financial tech arm of Tech Mahindra, launched a merchant acceptance solution for the Aadhaar Pay in February.
Who is FSS: FSS is a payments company which has a number of software suites which for ATMs, POS machines, e-commerce, m-commerce, and financial inclusion. It also offers UPI payments, payments gateway services, and wholesale payment reconciliation. In October 2014, it raised Rs 350 crore from Premji Invest and counts New Enterprise Associates and Jacob Ballas Capital India among other investors. The company claims to have more 100 customers across the globe.
IDFC Aadhaar Pay: The government launched the Aadhaar Pay in January (though the Prime Minister Narendra Modi is launching it again on the April 14th). Currently, 14 banks have signed up for Aadhaar Pay and IDFC Bank was first off the mark to launch the new payments system. Called IDFC Aadhaar Pay, the bank launched it after a pilot in 16 states where they on-boarded over 1,500 merchants on their smartphones.
The bank added that there is no merchant discount rate (MDR) attached to the Aadhaar Pay as it runs on the Aadhaar Enabled Payment System (AEPS) railroad. The AEPS is a financial inclusion product developed by the National Payments Corporation of India (NPCI) that allows cash withdrawal, deposit and funds transfer at POS (MicroATM) through a business correspondent of any bank using the Aadhaar authentication.