Skip to main content

In most emerging markets, the payment acceptance network remains spotty and underdeveloped. FSS AadhaarPay disrupts India’s traditional POS-driven business models by leveraging the ubiquity of mobile connectivity and the National ID (Aadhaar) to address this infrastructure gap and drive digital payments growth.

FSS AadhaarPay enables banks to roll-out a wide-scale digital acceptance. payment network by facilitating payments through biometric authentication, without the need for a physical payment instrument. The low-cost solution removes the need for merchants to invest in expensive POS equipment and completes transactions using just a mobile app and a biometric reader.

This helps banks rapidly expand the merchant ecosystem by increasing the number of acceptance points in a cost-effective manner.

The Aadhaar Payment System supports an efficient onboarding process, enabling quick service expansion. A simple and paperless eKYC process verifies merchants instantly via the Aadhaar Payment System. Merchants registered with the bank can set themselves up within minutes by installing the mobile app and submitting their Aadhaar number and biometrics to complete verification.

How it Works

The service leverages the universal availability of the mobile device and Aadhaar - India’s biometrically-enabled digital identity -- that covers 99% of the populace to advance the growth of digital payments. Envisaged as an open platform, the Unique Identification Authority of India, allows payment service providers to consume APIs, “on-demand” to authenticate customers. Besides leveraging Aadhaar for establishing user credentials, the national identity also serves as a financial address that can be directly linked to the customer’s bank account. Any merchant with a biometric reader and an Android phone can download the AadhaarPay application to accept payments by scanning

the customer’s fingerprint and entering the amount at the point-of-sale (POS) terminal.

FSS AadhaarPay uses APIs exposed by UIDAI to authenticate the customer’s biometric credentials mapped to the social security number. On successful authentication, the transactions are routed to the customer’s issuing bank.

Merchant installs FSS
AadhaarPay App

Merchant downloads FSS AadhaarPay App and attaches a UIDAI certified scanner to the smartphone


Submits Aadhaar number and biometrics for eKYC and is onboarded instantly

Accepts payments
from customers

Enters the customer's Aadhaar number, bank name and amount for payment


Captures customer's fingerprint using the biometric scanner

Receives payment

On successful authentication of the customer, funds are instantly transferred from  customers account to  merchant's bank account instantly

Lightweight Merchant App

FSS AadhaarPay offers merchants a mobile app that is easy to use and compatible with all Android devices. Merchants can initiate a payment transaction via the app in a few simple steps. Using the app, merchants can quickly:

Scan QR code

Merchants can scan the QR code on the customer’s Aadhaar card to quickly pre-populate details such as name and is compatible Aadhaar number. This eliminates need to type in customer details for every payment transaction, optimizes checkout time

View transaction history

Merchants can view details of all sales transactions and access details regarding the payment status of a specific order/transaction

View notifications

FSS AadhaarPay instantly notifies merchants on transaction events to help merchants stay updated and track payment status

Generate digital receipt

Merchants can generate a receipt for every transaction and SMS details to the customer. A proof of purchase for every transaction lowers dispute volumes

Manage profile

Merchants can self-manage accounts and update any account related information over the app

Aadhaar APIs to Foster Innovation

FSS AadhaarPay exposes transaction APIs to partners to facilitate in-app transactions and leverage external sources of innovation

Facilitates Immediate Credit in the Merchant’s Account

FSS AadhaarPay uses the bank account as a source of funds and all transactions are cleared and settled using the IMPS network (India’s real-time fund transfer network), ensuring immediate crediting of accounts.

For on-us transactions, FSS AadhaarPay interfaces with banks system for instant transfer of funds from the customer’s account to the merchant’s account.

For off-us transactions, payments are routed through NPCI infrastructure and on confirmation, FSS AadhaarPay will facilitate real-time credit of funds into the merchant’s account.

FSS AadhaarPay shares reconciliation files with the bank at the end of each day for transaction settlement.

Mitigates Risk

FSS AadhaarPay can effectively identify and manage all kinds of risks. Strong internal controls and tools help prevent fraud and address:

Operational Risk

Implements end to end encryption of data to prevent identity theft and fraud

System Risk
Access rights

Role-based access to the application GUI protects system from unauthorized access

Transaction Risk
Secure device binding

Ensures secure transmission of biometric data from the scanner to the merchant’s mobile during the authentication stage of the transaction

Multi-factor authentication

Authenticates via an OTP/passcode in combination with the customer’s biometrics for higher transaction values to further secure the payment transaction

Risk checks

Enables banks to define custom rules on the volume, value and velocity of transactions for merchant, and customers to contain risk and payment fraud. Banks have the option to blacklist customer accounts or merchant terminals when a threshold limit is crossed

Real-time risk monitoring

Integration with FSS Payanalytix risk scores transactions based on multiple parameters - including location, user activity and changes in the behavioral patterns of merchant and customers

Detailed Reports

FSS AadhaarPay offers a wide range of reports to help banks and merchants monitor business performance. Daily, weekly and monthly transaction reports help banks and merchants understand service adoption patterns and accordingly design strategies to grow user base and expand services.

Transaction Analysis - Provides merchants and banks a snapshot of transaction activity including:

Successful transactions by payment type - Aadhaar, QR codes, UPI for visibility into the usage and revenue across different channels

Transactions grouped by status - Success, failure, reversal, timeout, helps banks identify transaction problems relating to excessive denials, transaction failures or response times

Region performance - Drilldown view of adoption patterns at a regional level aids with business planning

Failure analysis - Banks can view failed transactions, identify root cause for failure and take corrective measures to improve success rates

Maintains High Security Standards

FSS AadhaarPay’s multi-level security enforcement always ensures maximum
protection for data and users

Complies with UIDAI security standards

Supports biometric devices that are certified by UIDAI for payment acceptance. Transactions originating from non-certified devices are automatically rejected

Supports SSL keys

Supports encryption for Protects against sensitive information in transit

Complies with OWASP policies

Protects against application related vulnerabilities and threats

Benefits to Banks, Merchants
and Customers
Benefits to Banks
Benefits to Merchants
Benefits to Customers


Featured Brochure

FSS AadhaarPay

Associated Products and Services

eFinclusiv MicroATM Services

Enabling access to basic banking services anywhere, everywhere


Building Digitally Inclusive Societies


Merchant Hub

Business Agility for an Omni-channel World

QR Pay

Fast, Simple and Interoperable

To give you the best possible experience, this website uses cookies and by continuing to use the site you agree that we could save them on your device. Cookies are small text files which are placed on your device and which can remember your preferences / some details of your visit.