How Does Aadhaar Pay App Work?

Aadhaar Pay app is finally launched by the government of India and now it supports cashless payments for merchants. Advantage of using Aadhaar Pay for merchants is that it will allow payments from customers without smartphones who wants to pay using cashless transaction. If you are a shopkeeper or run a business and need a digital payment setup then you can definitely bank on this app. Wondering how does Aadhaar Payment app work? Here is all you need to know to be able to use it:

No more credit card/debit card fees

Merchant’s Aadhaar Pay completely eliminates credit card/debit card fees because it is free to use and government does not charge any fee per transaction to use it. Therefore, there is a not need to pay per transaction fee to companies like MasterCard and Visa to use their payment gateways and POS machines at your shops or showrooms.


Works Without Smartphone

With this app cashless payments are possible even if the customer does not have a smartphone. However, the merchant has to have a smartphone with the app installed and fingerprint scanner to take payments.

Aadhaar Number & Fingerprint is The Password

BHIM-Aadhaar Pay app is based on functionality that uses biometric scans as password to authorise payment. This allows users to just enter the aadhaar number, select the bank and use their fingerprint to authenticate a transaction.


Require Customers To Link Aadhaar Number To Bank Account

The app requires every user to link their Aadhaar number to their responsive ban accounts that they want to use to pay. There is no need for customer id or other details required in net banking transaction, but their bank account must be linked with Aadhaar number to make payments.

How The Aadhaar Payment App works

To create the setup of accepting digital payment, the merchant needs to download the Aadhaar Pay app from Google Play store and install it. The app only available for android platform at the moment. Merchant also need to attach and install a biometric scanner and link it with the app to be able to provide fingerprint scanning facility to the customers.


When a customer want to pay using the system, the merchant needs to enter the amount and then ask the customer to enter his/her aadhaar number and in the app’s interface. Then the customer can select the bank to make the payment. Payment authentication and verification is done by the biometric scanner by scanning the fingerprint of the customer.

How To Download It?

The app is available on Google Play Store and merchants can easily download Aadhaar Pay payment app from there and install it in few seconds only.

Requires Internet Connectivity To Function

The app is based on internet connectivity because it uses NPCi platform and UIDAI database to authenticate payments. Therefore there is stable internet connection required to make the app work. There is no need for telephone line like it is required for POS machines to work.


Individual Fund Transferred Are Not Allowed

This app is for merchant’s use only and therefore it cannot be used to do person to person fund transfers.

Rs. 10,000 Per Transaction Limit

Currently Aadhaar-enabled payments systems only allows Rs. 10,000 per transaction, but the limit will be increase soon by the government.

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