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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.

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

  1. Dear Faiz,
    I am in the process of buying a POS machine for receiving payments for my Institute. The products available presently are not Adhar enabled i.e. no thumb reader. Is it right time to install one now or shall I wait some more time, till adhar enabled payment is in place.

    1. Hello Pradeep

      If the size of transactions at your organisation is very large in number, it would be better to get a POS machine so you don’t misss any potential customers. Although people are rapidly moving towards newer and advanced methods of payments, but still it would take some time till Government launches AEPS app for making aadhaar enabled payments. Also people will require some time to get adapted to that payment system. Moreover, a large section of society doesn’t have aadhaar cards yet.

      For now it would be a wise decision get get a POS machine. This way you won’t miss any potential customers, gaining a compititive edge over others present your market who have not yet adopted to digital ways of payment.

      Hope it was helpful!
      Thank You

  2. You mentioned about Micro atm, Can you please say who all are the real users of Micro atm?
    Means, where the service is actually available.??

    Can I make Aadhaar enabled payment through that machine now.??
    Is the service started working.??
    Or I have to wait for the launching of AEPS app.?

    1. The Micro ATM is actually for the merchants who need to accept the payments. Not many merchants are using Micro ATM for now and it is very rare to see them in use.

      With the coming of AEPS app, the Micro ATM will no longer be needed as the smartphone (with a fingerprint sensor attached) will be used instead of that machine.

    1. The bank with which you have linked your Aadhaar number would set the appropriate limit per transaction or in a given day.

  3. It is a real good..I conceived this idea four years back,,The only question in my mind is what will happen if my aadhar is linked to my four saving bank acounts with different banks and one current account of a proprietorship firm..
    Secondly Govt s not making any policy on cancellation of aadhar cards. The death certificate should be issued only on surrender of aadhar and those leaving aadhar. The birth certificate should also be issued to all new born babies after making the aadhar card..(foot print may be recorded as was being done when I was born in 1968) which should be reissued once they attain an age of 12 or so..with other biometrics


    1. App has been introduced and will be avaiable for download any time today. You can join our WhatsApp Broadcast to get the app download link once officially available. Send “Add Me” to +91-7006100343

  4. Dear,
    i want to buy this AEPS machine, where it is available.
    please give me details contact no or inform me on 8401765037 (if possible).


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