Google launched Aadhaar-based authentication for UPI transactions that will allow users to set up their UPI pin without a debit card. Support for UPI using Aadhaar will work via National Payments Corporation (NPCI).
Users looking to onboard UPI via Aadhaar will need to ensure their phone numbers registered with UIDAI and their bank are the same, and their bank account is linked with Aadhaar.
Google Pay Using Aadhaar
Google Pay users will now have the option to select between a Debit card or Aadhaar-based UPI while onboarding. In order to use Aadhaar-based onboarding, users will need to enter the first six digits of their Aadhaar number to initiate the process.
To complete the authentication, users will have to enter the OTPs received from UIDAI and their bank, after which the bank will complete the process and users can set their UPI pin.
Post set up, users will be able to use Google Pay to make transactions and check their account balance. Google will not store Aadhaar number and merely acts as a facilitator in sharing the Aadhaar number with the NPCI for validation, the company shared in a press release.
Increase the Penetration of Digital Payments
“Aligned with the Government’s vision to drive financial inclusion, this feature will further strengthen our efforts to drive deeper penetration for digital payments in India. Over the years, we are very heartened by the ready adoption digital payments have witnessed in the country, and this feature will help boost the UPI ecosystem even further”, Sharath Bulusu, Director of Product Management from Google said.
According to UIDAI over 99.9% of the adult population in India have an Aadhaar number and use it at least once a month.
