Aadhaar Pay Mobile Service goes Live in India – What is Aadhaar Pay? & how Aadhaar Pay Works?

Aadhaar Pay Mobile Service goes Live in India – What is Aadhaar Pay? & how Aadhaar Pay Works?

In a bid to encourage a less-cash economy in the country, the Indian government has slated and has released Aadhaar Pay, a mobile app for merchants on December 25.

The new Aadhar Pay app is developed by IDFC Bank in collaboration with the Unique Identification Authority of India (UIDAI) and the National Payments Corporation of India (NPCI) and is expected to be made available initially on Android-based Google Play platform on Sunday and later in Apple’s iOS app store. It is expected to benefit around 40 crore people who have linked their Aadhaar number to their respective bank accounts.

How does Aadhaar Pay work?

Since most users of India are new to the concept of a digital economy, Aadhaar Pay developers have made an interface as simple as it can get. The consumer does not need even a phone to transact with the seller.

“The settlement is done through the Aadhaar bridge, which means it connects a much wider set of people. Anybody who has Aadhaar seeding done can make payments to merchants with this app. It wouldn’t matter if the person does not have a credit or debit card, or even a mobile phone,” said Rajiv Lall, MD & CEO at IDFC Bank.

The vendors just need to install the Aadhaar Pay app from Google Play store on their Android phone and buy a fingerprint scanner worth Rs. 2000.

For a transaction, customers have to place their finger on the scanner and then they will be asked to choose which of the bank account they want to credit/debit and the amount will be paid/deducted from that particular account. During the whole transaction, people need not have to reveal a password nor a user-ID or wait for OTP (One Time Password), as the Aadhaar number holds all the required details to authenticate the transaction.

Another benefit of the Aadhaar Pay app is that the cost of the product will also get reduced, as it will eliminate the fee payments for service providers like card companies such as MasterCard or Visa, which many believe it to be the stumbling block for embracing digital transaction method by vendors in India.

Graphical Illustration

What Aadhaar capture? and How it Captures?

We give below a detailed overview on what is Aadhaar Pay and How it works. The ground breaking idea of using Aadhaar as a payment mode seems to be there from 2012, however it has started materializing only now. We have listed out on How Aadhaar Pay can be used by Users and also Merchant using Aadhaar Pay.

What Aadhaar capture? and How it Captures?

What you need To make Aadhaar Pay work?

*Mobile number should be mapped to your bank account number

How Aadhaar Pay Works?

What happens in the background of Aadhaar Pay?

Aadhaar Payment App for Users

• Enter your Aadhaar Card Number (For Users).
• Select your bank with which transactions should be authorized.
• Now scan your finger on biometric.
• Fingerprint will work as your password.

Download the Aadhaar Payment App
(for Value Added Services)

• Balance Enquiry
• Cash Withdrawal
• Cash Deposit
• Aadhaar to Aadhaar Fund Transfer
• Best Finger Detection(BFD)
• Mini Statement (Proposed)

Aadhaar Payment App for Merchants

Download the Aadhaar Payment App.
Log in with Merchant Aadhaar Card Number
Validate the Aadhaar Number using your fingerprint.
For accepting payment, click on Aadhaar Pay.
Enter customers Aadhaar Card Number, Bank Name and Amount to be paid.
Select Yes to proceed.
Validate the transaction using customer’s fingerprint.
After successful authorization, the amount will be transferred from customers bank account to merchant bank account.

Watch a video on How Aadhaar Pay works?