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Pay Using Aadhaar Card

How To Pay Using Aadhar Card – Make Aadhaar Enabled Payments

After demonetisation, Government is facilitating Aadhaar number-enabled financial transactions through mobile phones as part of its drive to convert the country into a cashless economy. Now people will be able to make payments using their Aadhaar cards. This post will tell you how to pay using Aadhaar card.

Economic Times quoted the director general of Unique Identification Authority of India (UIDAI), Ajay Pandey saying, “Aadhaar-enabled transactions are card-less and pin-less. This would enable Android phones users to digitally transact using their Aadhaar number and fingerprint/iris authentication”.

As you know, India is moving towards a cashless society. This transition phase from cash to no cash transactions enabled many E-Wallet companies like Paytm & Freecharge to grow exponentially. To continue day to day life payment system is a must. People have started using different alternatives to tackle cash crunch India is facing after demonetisation. People use plastic money more than ever before. Paytm is a name that has grown immensely popular. Even road side vendors have started using Paytm to accept payments.

Now Government wants Aadhaar-enabled payment to replace debit, credit cards. People can now pay using aadhar card. It means you don’t need to have plastic money or e wallets anymore. All you need is an aadhar card to make payments.

The initiative can help the government deal with situations like recent demonetisation. Also it will help curb black money menace and bring in more financial transaction transparency.

The government is working on developing a common mobile phone app. This app can be used by shopkeepers and merchants for receiving Aadhaar-enabled payments bypassing credit and debit cards, pin and password.

ALSO READ : How To Link Aadhar card to your bank account – A Step By Step Guide 

How To Pay Using Aadhaar Card ?

AEPS in its initial formAEPS Machine: Aadhaar payment system

AEPS (Aadhaar Enabled Payment System) in its basic form is a machine known as micro ATM. This machine is similar to POS machines that accept credit/debit cards. The only difference is that instead of any card you need to authenticate your payments using your bio metrics (usually fingerprint).

How does AEPS machine work?

A merchant who needs to accept payment will enter the aadhaar number and the amount in the machine using the touch interface provided. The customer then needs to authenticate the payment using his/her fingerprint. The amount will be deducted from a bank account that is linked to customers aadhaar number and credited to the merchants bank account.

Aadhaar Pay Merchant App (AEPS recently introduced)

A merchant will have a smartphone with a finger print scanner connected to it via an application. You will have to place your finger on that scanner to pay using aadhaar. Your bank , which is already linked to your aadhaar number will be debited with the amount you pay to the shopkeeper.

Aadhaar Pay Merchant App – How it works?

UIDAI has introduced the much awaited Aadhaar Pay Merchant App. Using this aadhaar payment app, merchants can accept payments which will be cashless, cardless and pinless.

Also Read : Aadhaar Payment App Introduced. Where to Download and How to use?

  • To accept payments, merchants needs to register on the app using the aadhaar number. The registration needs to be authorised using the fingerprint of the merchant.
  • Now to accept any payment from the customer, the merchant needs to enter the customer details which include customer aadhar number, customer bank name, and amount to be paid by the customer.
  • An option to continue or to reject the payment will be provided. Once choosen to proceed, the payment needs to be authorised using the customer’s finger print.
  • After successful authentication, the amount will be transfered from the customer’s aadhaar linked bank account to merchant’s aadhaar linked bank account.

ALSO READ : Paytm – Pay Without Internet Using toll-free number feature

Watch this video to know more about aadhaar pay merchant app

Faiez Ajaz

Tech lover, Story Teller, Writer and a Business Student. You can follow him on Facebook and Instagram.

41 thoughts on “How To Pay Using Aadhar Card – Make Aadhaar Enabled Payments

  1. i think govt dont want to release adhar based app because it will cause loss to debit and credit card companies and govt just threatening these companies on the name of such app

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