There’s a good reason why you’ve been recently getting all those messages from your bank to link your Aadhar Card to your bank account. We’ve already established how demonetization is not just a move to get rid of black money but also has a pseudo motive to transform us into a cashless economy. Taking a step further in this direction the government is backing Aadhar Payment systems that enables you to make online transactions by simply flashing your Aadhar card. If you’ve been facing cash problems when going to the local grocery and stores, this might be the long-awaited solution to this crisis. As a buyer and consumer, all you need to have is your Aadhar card that’s linked to your bank account with you when you step out to shop. The rest of the payment procedure is dependent on the merchant or seller you’re engaging with.

How does the Aadhar Payment app work?

Merchants will have to download the app on their Android smartphone. They will also have to purchase a biometric reader that will be connected to their app. This device is slated to be available at Rs.2000. When a customer wants to make a cashless payment, they will have to add their Aadhar Number in the app and select the bank account that’s linked to it. They will then use the biometric scan to further authenticate the card holder’s identity. And that’s it, you can walk away with your cashless purchase.



Unlike mobile wallets, you don’t need a smartphone with internet to get through with this transaction. You don’t need to apply for credit cards and remember confusing pins and passwords.


Sellers who’ve been hesitant of using MasterCard and Visa because of the service fee payment can now opt for this form of online transaction without paying anything extra for each transaction. This app is available to only Android users for now but will be extended to iOS and Windows mobile phones too. The formal launch of a centralised government app is still awaited but for now, banks like State Bank of India (SBI) and IDFC have launched their apps and are testing them. So, go ahead and update your bank account with your Aadhar Card because this payment option is going to become a reality soon. Cover Image Courtesy: