Here’s Everything You Need To Know About Aadhar Payment App

Here’s Everything You Need To Know About Aadhar Payment App

Here’s Everything You Need To Know About Aadhar Payment App

by December 27, 2016
Aadhar payment app

Demonetization may have put everyone into a cash-hunting frenzy, but one cannot deny that the government is trying some new things to make it easier for the consumer. Latest among these is a revolutionary new way of payment which could be convenient not just in these difficult days, but also in the future. We are talking about the government’s new Aadhar Payment app. This new app could pose a serious challenge to existing cashless systems like PayTM and Freecharge because it works without a smartphone, at least on the consumer’s part. Only the merchant needs to have an Android smartphone with good internet connectivity. Since the consumer need not have either a smartphone or a plastic card, the convenience factor on this form of payment is off the charts.

So how does it work exactly?

There are a few pre-requisites both on the consumer’s part as well as the merchant’s part.

aadhar card linked with bank account


Consumer needs:

  • Aadhar number. 

  • Aadhar linked bank account. 

Merchant needs:

  • Android smartphone

  • Aadhar Payments App

  • Stable Internet Connection

  • Biometric Fingerprint Scanner

  • Bank account

As one can clearly see from the requirements, the consumer does not have to go out of his or her way for this to work. They don’t even need a phone! But the same cannot be said of the merchants. They need a biometric scanner which can set them back by at least Rs. 2000/-. But that’s a small price to pay if you never have to shell out fees for debit and credit card machines and for Visa, Master card companies. 

Now let us take you through the process:

how aadhar pay works


You go to a restaurant, have a hearty meal and the time has come to pay for your food. All you have to do is produce your Aadhar number, either from memory or from your Aadhar card itself. The merchant will fire up the Aadhar Payment App on his phone and enter your Aadhar number. The app will then list out the bank accounts linked to that number, giving you an option to choose the account you wish to pay from. And then the last thing you need to do is place your finger on the biometric scanner. Once your scan is approved, you are done. The amount will be deducted from your Aadhar linked bank account and transferred to the merchants account.

aadhar how to make e-payment

It sure is easy and convenient, but everything has its own advantages and disadvantages. 


  • No phone required

  • No plastic cards required

  • Remembering pin number irrelevant. 

  • No need to put money in wallet as the amount will directly be deducted from the account.


  • Merchant requires biometric scanner

  • Internet a must. Locations without internet connection cannot make use of the app. 

  • App can only be used for payments. Funds transfer may not be possible without the help of a third party that has biometric facility. 

  • Lack of consumer-friendly schemes like PayTM Wallet

  • Finger print scan the only form of security. Hence it can easily be exploited. We expect the government will improve on this with either a two pass or three pass security system. 

aadhar digital payment fingerprint


It is really nice to see such an initiative from the government to curb the menace of demonetization which has caused trouble to a lot of people. But it needs to improve upon its competitors to be successful. The Aadhar app would also benefit from offers and cashback schemes along the lines of PayTM Wallet Offers if it wants to seriously compete against PayTM.