Build Your Own Aadhaar + PAN Microservice for Identity Verification
                     Build Your Own Aadhaar + PAN Microservice for 
Identity Verification
As identity verification becomes a core requirement for onboarding, compliance, and fraud 
prevention, businesses in 2026 are moving away from monolithic systems toward microservice-
based Aadhaar and PAN verification architectures. Building a dedicated Aadhaar + PAN 
microservice allows organizations to achieve faster verification, better scalability, stronger data 
privacy, and audit-ready compliance. This blog explains how to design, build, and secure your 
own Aadhaar + PAN identity verification microservice, the challenges involved, and how Coin 
Circle Trust simplifies this process with API-first, privacy-focused solutions.
Why Identity Verification Needs a Microservice Approach
Aadhaar and PAN verification are no longer occasional compliance checks. They are now real-
time, high-volume operations used across customer onboarding, employee background 
verification, vendor due diligence, and regulatory compliance.
Traditional tightly coupled systems struggle to scale, remain secure, and meet compliance 
expectations. This is why modern organizations are adopting microservices—small, 
independent services built for speed, security, and flexibility.
What Is an Aadhaar + PAN Verification Microservice?
An Aadhaar + PAN verification microservice is a dedicated backend service responsible solely 
for identity verification tasks. It centralizes identity checks and exposes them through secure 
APIs that can be reused across applications.
Core Responsibilities
Aadhaar authentication using consent-based methods
PAN validation and name matching
Consent management
Compliance logging and audit trails
Secure handling of API responses
Why Build a Separate Identity Verification Microservice?
Scalability
Verification traffic can spike during hiring drives, onboarding campaigns, or seasonal demand. A
standalone microservice can scale independently without affecting other systems.
Security
Isolating Aadhaar and PAN verification logic reduces the attack surface and limits exposure of 
sensitive identity data.
Compliance and Auditability
Centralizing verification activities makes it easier to track consent, usage, and verification 
history, which is critical for audits in 2026.
High-Level Architecture of Aadhaar + PAN Microservice
Core Components
API Gateway
Handles incoming requests, authenticates clients, and applies rate limits to prevent abuse.
Identity Verification Engine
Processes Aadhaar and PAN verification requests, validates responses, and applies business 
logic.
Consent Management Module
Records user consent, enforces purpose limitation, and ensures verification is time-bound.
Security and Encryption Layer
Encrypts data in transit and at rest, masks sensitive identifiers, and prevents raw data storage.
Audit and Logging Service
Maintains detailed logs of verification activity for compliance and audit readiness.
Aadhaar Verification Flow Inside the Microservice
User provides Aadhaar details or OTP-based consent
Request is validated by the API gateway
Consent is verified and logged
Aadhaar authentication API is invoked
Response is processed
Only minimal verification output is returned
No raw Aadhaar data is stored at any stage of the process.
PAN Verification Flow Inside the Microservice
User submits PAN number with consent
PAN verification API validates status and name match
Response is processed by the microservice
Result is returned for compliance or onboarding
Data Privacy and Compliance by Design
Privacy-First Architecture
In 2026, identity verification systems must follow data minimization, purpose limitation, and 
consent-driven access. Microservices designed with privacy at the core reduce regulatory risk.
Compliance Automation
Automated logs, alerts, and reports help organizations stay audit-ready without manual 
intervention.
Common Challenges When Building Your Own Microservice
Regulatory Complexity
Staying updated with Aadhaar, PAN, and data protection regulations requires continuous 
monitoring and policy updates.
API Security Risks
Poorly secured endpoints, exposed logs, or weak authentication mechanisms can lead to 
serious data breaches.
Maintenance Overhead
Maintaining uptime, scaling infrastructure, and managing audits can consume significant 
engineering resources.
How AI Enhances Aadhaar + PAN Microservices
Intelligent Fraud Detection
AI models can identify abnormal verification patterns without storing personal identity data.
Automated Anomaly Monitoring
AI helps detect API misuse, abuse, or suspicious spikes in verification requests.
Smart Masking and Tokenization
Sensitive fields are automatically masked before storage or logging.
Build vs Buy: A Practical Decision
While building your own microservice provides control, many organizations choose to 
accelerate development by using ready-to-integrate platforms that already meet security and 
compliance standards.
How Coin Circle Trust Simplifies Aadhaar + PAN Microservices
Coin Circle Trust provides API-first identity verification services that function like a ready-made 
microservice.
Aadhaar and PAN verification APIs
Privacy-first architecture with minimal data exposure
Built-in consent management
Encrypted and secure infrastructure
Audit-ready compliance logs
AI-powered risk and fraud monitoring
Use Cases for Aadhaar + PAN Microservices
Digital onboarding platforms
HR and background verification systems
FinTech and lending applications
Gig economy and marketplace platforms
Vendor and contractor verification
Future of Identity Verification Microservices
Beyond 2026, identity verification will evolve toward tokenized identity checks, continuous 
compliance monitoring, zero-trust architectures, and AI-driven risk scoring. Microservices will 
remain the foundation of this evolution.
Conclusion
Building an Aadhaar + PAN microservice is a strategic move for businesses that value speed, 
privacy, and compliance. For organizations that want the benefits without the complexity, Coin 
Circle Trust offers a secure, scalable, and compliant alternative that is ready for 2026.
FAQs
What is an Aadhaar and PAN verification microservice?
A dedicated service that handles Aadhaar and PAN identity verification through secure APIs, 
separate from core business systems.
Is it mandatory to build a microservice for identity verification?
It is not mandatory, but microservices provide better scalability, security, and compliance than 
tightly coupled systems.
Can Aadhaar and PAN data be stored inside a microservice?
In most cases, raw Aadhaar and PAN data should not be stored. Verification should rely on API 
responses with minimal data exposure.
How does consent work in an identity verification microservice?
Consent must be explicit, purpose-specific, and logged for every verification request.
How does Coin Circle Trust reduce development complexity?
Coin Circle Trust provides ready-to-use Aadhaar and PAN verification APIs that eliminate the 
need to build and maintain infrastructure.
Is API-based identity verification secure?
Yes, when implemented with encryption, access control, consent management, and audit 
logging, API-based verification is highly secure.