Aadhaar Pay App – What It Is & How Does it Work?

aadhaar pay appThere is no denying that paying with aadhaar payment app is the most sought after and easiest mentor of sending and receiving cashless payments in India. Besides, being easy to use, it is also the cheapest way of receiving and sending money online. Every single Indian with aadhaar card and smartphone can use the aadhar pay app to make payments. Whether a person is rich or poor, living in a city or small village, Aadhaar Payment method is the most common and easily accessible method available today.

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Integrated with existing BHIM App, the new Adhaar Payment App system is undoubtedly going to change the digital payment world in India. This revolutionary payment option is for all indians who used to stand in long queues at their banks to send and receive money. This post will cover everything related to Aadhaar Pay app to provide you all the information required to use it. Whether you want to know about how to download Adhaar Pay App, installation process and step by step guide to send and receive money, we will tell eery bit of information about it. Even if you don’t have a smartphone, we’ll tell you how you can still use this application.

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What is Aadhaar Payment App & What It is Meant For?

The Google PlayStore is flooded with tons of digital payment applications. There are popular ones available such as SBi Pay, Freecharge, PhonePe, SBI Pay, IDFC Aadhaar Pay, UPI Apps, Paytm, JioMoney, and several other apps. However, the Aadhaar based BHIM App is incredible with lot of features and also makes life easier in terms of sending and receiving payments. Best of all, it is an app doesn’t even require you to have smartphone for paying someone.

It is fascinating that users can pay through aadhaar payment application without having a mobile even and that is possible because as a customer you don’t need to have it to pay for the product or service you have consumed. The merchant is responsible to arrange the smartphone device with the app installed in it. The consumer is not required to have anything. This app is specifically built for merchants and shop owners who wants to collect payments from their customers.

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The AadhaarPay App is based on aadhaar biometric database that makes it possible to use fingerprint of the payment to authenticate and process payments. With this functionality, the app scans the fingerprint, connects with aadhaar database and then pays from the Aadhaar linked bank account to the merchant’s account.

Benefits & Advantages for Merchants, Shopkeepers and Consumers

The benefits of Adhaar Payment app are plenty for both merchants and customers because it makes it easier to transact and payments are processed in real time. For customers or payers it is more convenient because the merchant needs to get the smartphone, app installed and fingerprint scanner to receive payments. Down below are some of the benefits and advantages of the app:

The consumer is not required to have a smartphone with the app installed or any other devices or technology to make payment for services or products he/she has purchased.

There is no provision for service tax or any additional extra charges for payments processed through Aadhaar Pay mobile application.

Consumer doesn’t have to carry any debit or credit card to pay their bills using this app at the merchant’s shop.

Consumers is not required to provide PINs, MPINs and passwords to make payments.

Payments are processed instantly with the integration of aadhaar bridge system in the app because it works just like aadhaar enabled payment system that is also known as ‘AEPS’.

For merchants this is a life saver because it is affordable system to setup and there are no recurring charges to use the app to collect payments.

What Are The Requirements To Use Aadhaar Pay App?

AadhaarPay app is developed to be user friendly and intuitive so that merchants find it easier to use and customers as well. It does not require the customers to have any device to pay because they can pay using their fingerprints. The customer is only required to remember the Aadhaar Card Number. However, your fingers should be clean so that the scanner can scan it properly. You should also remember the bank account you have linked with your Aadhaar number.

For merchants there are requirements to be able to use this payment method. The merchant must make arrangement for smartphone, stable internet connectivity, Fingerprint scanner, Bank Account and Aadhaar Pay App.

How Does AadhaarPay App Work?

There are number of steps and measures needs to be taken by a merchant in order to create a working AadhaarPay App system to receive payments. These steps are:

Merchants or individuals shop owners are required to install Aadhaar cashless merchant app in their android based smartphones. This is the most important aspect or else the system cannot work.

There is a fingerprint scanner required that must be connected with the smartphone in which the app is installed. These fingerprint scanners are easily available at mobile and computer accessories shops or else you can also buy them online. Price for an Aadhaar Pay Fingerprint scanner is in the range of Rs. 1500 to Rs. 2500.

Once the customers have purchased the product or service, the merchant can enter the amount in the app and then the customer will have to enter the Aadhaar card number into the application.

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The app will instantly display all the linked bank account to that aadhaar number. Customer can select any bank account and pay. This option is displayed to only those customers who have linked their aadhaar to multiple bank accounts.

Now the customer has to put his/her finger on the fingerprint scanning section of the reader. Fingerprint is required because it works as a password to authenticate the payment. The reader then send your fingerprint scan to the app’s the database online to get the required details.

The App works on the functionality scanning and searching the Aadhaar database based on provided fingerprint and aadhaar number. In case of data matching the NPCI would be given a green signal to go ahead with transaction. Then, the NPCi has the authority to transfer the funds from one bank account to another. To make all these functionalities happen, Aadhaar bridge payment system is utilised. Therefore, both UIDAI and NPCI plays an important role in payment processing in the app.

Limitations & Disadvantages of Aadhaar Pay App

Even though benefits of Aadhar pay applications are many, but there are still many limitations that needs to be considered. For instance, it is a perfect system for customers because they don’t have to worry about anything, but merchants have to bear additional cost of purchasing a fingerprint scanner. Having said that, in the setup it is just a one time expense and only cost about Rs. 2000. This is still cheaper compared to other POS machines offered by banks that cost lot of money for initial setup and then also charge monthly or yearly fees. Not to mention POS machines also charge per transaction fee as well.

This system also has a downside for individuals because they cannot use it for person to person money transfer because there fingerprint scanner is necessary.

Aadhaar Pay app also requires internet to perform its functionaries, therefore it is not a recommended payment system in area where there is no internet access or have poor coverage. Unstable internet connectivity can be a big headache to use the system.

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