How Aadhar payment works in India


The Unique Identification Authority of India (UIDAI) is a central government agency of India has collected the biometric and demographic data of residents, store them in a centralized database, and they issued a 12-digit unique identity number called Aadhaar to each resident. This aadhar number is linked with their bank accounts.


Now Indian citizens can make payment without any debit or credit card, smart-phones. to make payment using aadhar number and biometrics, central government has launched app ‘Aadhar Pay’.

The main objective of Aadhar payment app is to increase the use of digital transactions among merchants in the country. It is an Android smart-phone app using which merchants can receive payments from customers against any bill.

How it works:

step 1:

Merchant need to download application on the Android smart-phone which is connected to a biometric scan machine. The biometric scan machine is available at a cost of Rs. 2000.

step 2:

Merchants would be required to register themselves on the app and connect their bank accounts where they want to receive payments from customers.

step 3:

If a customer wants to make payment, then he/she just need to enter his Aadhar Number in the app

step 4:

Linked bank name will open up, then customer will select bank from linked bank list and merchant will enter amount.

step 5:

App will ask for biometric scan input of customer. The biometric scan would work as the transaction password.use the biometric scan as the password for the transaction.

step 6:

If the biometric scan is matched with the one with UIADI and if there is enough balance in selected bank account, the amount will be transferred to bank account of merchant.

that’s it.



Its a very easy way of cashless transaction.

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