MasterCard has developed a new payment solution for 'Aadhaar', a Multipurpose National Identity Card (MNIC) project initiative of Indian government, which enables Aadhaar holders to perform payment transactions using Unique Identification Number (UID) numbers with biometric authentication.
Aadhaar, a 12-digit UID, will capture basic demographic and biometric information of Indian residents. The UID will make it possible for residents to establish their identity with financial institutions thereby providing them a gateway into the formal banking system.
MasterCard said that the solution is based on the Unique Identification Authority of India (UIDAI) platform and MasterCard’s payment network and family of brands. The solution will empower Aadhaar account holders to move away from cash and towards electronic transactions.
The solution supports prepaid, debit and credit payment products in a broad based offering to drive UIDAI’s objective of financial inclusion.
As part of the proposed solution, it enables participating banks to issue a 16 digit Primary Account Number (PAN) to individuals enrolled into Aadhaar.
MasterCard has developed a direct interface with Aadhaar to perform UID biometric authentication of such payment transactions. With this solution, payment transactions will be performed using the Aadhaar authentication infrastructure and MasterCard’s authorization, clearing and settlement infrastructure.