Aadhaar payment system is still in underdevelopment government working with this system with various banks to easy the payment system. The whole idea of making payment through is uniqueness of aadhaar number. According to statistics around 92% people have aadhaar numbers which linked with their account number.
Working of Aadhaar Payment system
To accept payments using Aadhaar payment system merchant needs to have thumb bio-metric system which is easily available in market approx. 1500 to 6000 depends on model and company. This bio-metric device will be able to connect with your mobile device using OTG cable. Once customer or payee puts its thumb on bio-metric reader it will connect to government aadhaar system to verify the user and its details. Post confirmation amount will be deposit into merchants account.
Difference from POS machine
Unlike POS terminals aadhaar payment system do not have any fees on any transactions. You just need to set up account details in aadhaar based app and bio-metric device to verify thumb impression.