Paytm, India’s largest mobile payment and commerce platform has now introduced Aadhaar-based eKYC (E-Know Your Customer) to make customer verification process convenient, paperless and real-time.
This move is in line with Paytm’s goal of bringing Indians into the fold of the mainstream economy.
Regulated entities like banks and wallet providers are required to carry out certain customer identification procedures while establishing account-based relationships and undertaking transactions. These procedures constitute KYC (Know Your Customer) process of customer verification and help identity theft, financial fraud, money laundering and terror financing.
A typical paper KYC process involves verifying the customer’s original documents of proof of identity and proof of address in person, filling up of forms, attaching latest photograph and copies of identity and address proof, verification of details, data entry into customer information management systems, and archival of all the paper documents. The process is fraught with operational challenges in managing the physical documents, and often takes several days for verification to be completed and is prone to fraud as documents can be easily forged.
Paytm’s Aadhaar-based eKYC is entirely paperless, instantaneous and secure. The customer’s identity is verified on the basis matching biometric scan of fingerprint or IRIS against Aadhaar database.
When a customer requests to upgrade his/her Paytm account, one can either choose to visit the closest Paytm centre or request a visit from a Paytm agent at a preferred address. Upon arrival, the agent carries out a quick and easy eKYC process using a mobile-based biometric scanner.
The customer’s consent is also captured using Aadhaar-based eSign, ensuring that the entire process is completely paperless. The process is also secure since biometric details are used to verify identity, thereby reducing the possibility of fake/forged accounts.