Aadhaar Pay Payment App

Aadhaar Pay Payment App: Benefits, Requirement and Risk factors involved

Ever since the nation experienced the ban of its higher value currency notes, several reforms and rules has been imposed by the government of India, among those going cashless is the vital thing carried by the central government led by Mr. Modi. The inclusion of Aadhaar number for doing online transaction made by the central government has done several changes in the entire operations of digital mode of payments. Recently, the central government of India introduced a new Aadhaar based payment app, which enables consumers to pay or transfers money with their Aadhaar number. Also the app holds the benefits of transferring cash in-between all the major nationalized banks across the nation.

Making Digital India

Introduced by the Indian PM in 2015, Digital India scheme focuses on transforming our nation into an empowered digital country. The government introduced many e-services as a part of this scheme. Demonetization has increased the digital transactions and the government is taking every effort to move towards cashless economy. This will reduce corruption and improve the transparency in transactions.

Cashless transaction modes

Post-demonetization digital payments are on the rise. They are done through UPI apps, AESD, USSD, Cards and e-wallets. The government has given some benefits to people who perform digital transactions to encourage them.

  • UPI apps can be used by android phone users by registering in their banks. They can transfer funds just by knowing the account number and IFSC Code
  • AESD transactions are done with the help of Aadhaar number and finger print. Transactions can be made from one bank account to another. Cash can be deposited and withdrawn through this system. The transactions can be done at free of cost service charges.
  • USSD transactions can be done by dialing *99#. The major advantage of this scheme is that it can be done even by using normal mobile phones. It can be used to perform non-financial as well as financial transactions. However, it has a transaction limit of five thousand rupees per day and service charges are applicable for every transaction
  • Cards include both credit as well as debit cards. Prepaid cards are also used for performing cashless transactions. Service charges are applicable for transactions done by cards. Further, POS machines are needed by the shop owners to perform card transactions. However, this is one of the widely used payment methods.
  • E-wallets are can be used to pay bills and transfer funds. Cash back offers are also provided by the app providers to encourage people continue using e-wallets.

All about the Aadhaar Payment App (APA)

Developed by IDFC and supported by UIDAI and NPCI, this app will truly take cashless transactions to the next level because of the advantages associated with it. It works similar to AEPS. Remembering Aadhaar number with clean hands is the basic requirement to perform transactions. However, this can be done only if your Aadhaar number is linked with your bank account.

Benefits and requirements

People have no need to carry their cards, remember their pins. It also does not require any smart phone or even ordinary phone to perform payments. It also has an added advantage of zero service charges. From a merchant point of view, the amount needed to invest for these payments are cheaper compared to POS machines. The merchants just need a scanner, mobile phone with app along with an USB Cable.


  • Although it has wide advantages, it still has some risks associated with it. Finger prints can be reproduced using certain techniques. Hence, it increases the threat to account security if someone knows the Aadhaar number.
  • All the transactions are done through app, which requires a good internet connection. In case of network failure, it is impossible to perform these transactions. The government must consider these factors into account and improve the safety and secondary options for digital payments.

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