Aadhaar Pay – Is It Better Than Debit/Credit Cards?

Aadhaar Pay – Is It Better Than Debit/Credit Cards?

The Indian government is in the final stages of launching an Aadhaar-enabled payment entrance. This will modify individuals with none debit/credit card or smartphone to travel cashless. Just having a valid Aadhaar card/number and your fingerprint are going to be enough to form a payment. To accept payments, a merchant solely desires to install the Aadhar Pay app on his/her smartphone.


How will Aadhaar Pay work?

First, the merchants need to download and install the Aadhaar Pay app and register in it with a bank account. Then, an Aadhaar biometric reader or fingerprint scanner has to be connected to the smartphone or pill. That’s all. Now the businessperson will settle for Aadhaar-enabled payments.

To make use of the coming service, a consumer has to link his/her bank account with his/her Aadhaar card. After a successful attachment, an individual will create cashless transactions simply with his/her Aadhaar card range and fingerprint.


Aadhaar Pay Pros

First, let’s talk regarding the benefits of the new payment system.

  1. wning a credit/debit card is not necessary. Anyone with an Aadhaar card and bank account will do cashless transactions.
  2. Merchants don’t have to buy costly PoS machines, which is needed for credit/debit card payments. The cheapest PoS machines value Rs. 5000, which go up until Rs. 15,000.
  3. The government won’t charge any transaction fee for Aadhaar Pay each from the shoppers and merchants. For credit or debit cards, the retailers need to pay 0.5 to 2 % service charge. Most consumers additionally have to pay a particular card fee to the bank. The e-wallets or digital wallets which was apparently free currently can shortly start charging some share to create themselves property.
  4. Over 1.1 billion Aadhaar card holders can be able to benefit of this. Mostly, the rural population who seldom own credit/debit cards or use smartphones can massively take pleasure in this new payment technique.

 Aadhaar fingerprint scanner

Aadhaar Pay Cons

Now, let’s look at the drawbacks of Aadhaar Pay.

  1. Merchants still need to purchase Aadhaar biometric readers. These fingerprint readers cost around Rs. 3000 to Rs. 4000 which is a very little but PoS machines.
  2. There is a bit doubt about the security of this new technique. The reason is that the payments are simply created with Aadhaar numbers and fingerprint. If someone manages to store your fingerprint or build some software system to simulate the input, then he/she can manage to empty your account. However, this can be resolved by the combination of two-step verification systems like OTP or PIN/Password or use the tissue layer scanning information of Aadhaar.
  3. The government might not charge any transaction fee, but will simply deduct taxes straightaway throughout the transaction
  4. There is no guarantee that the govt. shall keep Aadhaar Pay free from charge always. The payment system may become chargeable once it gets well-liked and individuals become keen about it.



Frankly speaking, if meticulously implemented, Aadhaar Pay has a lot of potential. It has the potential to be revolutionary, covering every national in the country with a Aadhaar card and a bank account. However, if wrongly executed, the payment system can be unfortunate. Demonetization has a vital role within the creating of Digital India, Aadhaar Pay may provide it a much-needed boost.