The Aadhaar Pay App is a system that is specially designed for merchants and enables digital transactions through the Aadhaar identity system, via a simple smartphone app with no additional need for any hardware or POS equipment; it is essentially the merchant version of AEPS that functions without a POS device. Since the whole Aadhaar payment system is authenticated via biometrics, the app also functions only in conjunction with a fingerprint scanner.
In case the merchant’s smartphone does not come pre-enabled with a fingerprint scanner, an external scanner, that is STQC (Standardisation Testing and Quality Certification Directorate) certified can be attached to the smartphone in order to process payments. In order to leverage the solution, merchants have to register with a bank (that supports Aadhaar Pay) by submitting e-KYC details and downloading the app through the link sent to their smartphones. Once Aadhaar Pay app installation is complete, merchants can easily start accepting payments.
The workflow for this simple yet effective payment system is as follows:
- Merchant installs the Aadhaar Pay app on his/her smartphone (after completing an e-KYC process with the bank) and ensures that a biometric scanner is attached to it.
- Customer enters the his/her 12- digit Aadhaar number, after which the app will fetch the linked bank accounts and the customer will need to select the bank account from which the payment is to be made (in case there are many bank accounts linked to the Aadhaar account)
- Customer authenticates payment by scanning his/her fingerprint and successfully completes the transaction, and the merchant receives the payment directly into his/her bank account.