It is no hidden fact that user verification is a long, tiring and time consuming process. Now, One97 Communication, which owns and operates Paytm is rolling out eKYC verification process, using Addhaar cards, for its newly setup payments business.
The users who use payment service of Paytm can now verify their account using Aadhaar card(or UID). As per the government rules, regulated entities such as banks and digital wallet providers are required to carry out customer identification procedures for maintaining account-based relationships and undertaking transactions.
With KYC process, the verification of the identity of an user is a regulatory norm to prevent identity theft, financial fraud, money laundering and terrorist financing. Earlier, a typical KYC process would take several days that required in person exercise of filling up forms and submitting copies of identity and address proof.
As per the company, this eKYC process is entirely paperless and secured. The identity of the customer is verified instantly by matching the biometric scan of a fingerprint or iris against the Aadhaar database.
Paytm founder Vijay Shekhar Sharma was the first one to receive payment bank license from Reserve Bank of India, among 10 others. The company is now gearing up to launch the payments bank service in October or November.
In the statement, Vijay Shekhar Sharma, founder and CEO of Paytm, said,
We are building India’s largest eKYC customer network to bring half-a-billion Indians to the mainstream economy. We have aggressive targets to become the largest Aadhar-based eKYC company in the country.
Paytm is currently one of the largest digital wallet service provider in India. It claims to have around 135 million users for its digital wallet service. Its user base is expected to increase further with the launch of its payments bank service. The company has also registered a new entity for its online retail business –Paytm E-Commerce Pvt. Ltd., and will now spin-off its e-commerce business with this new entity.
The company has recently also secured $60 million in funding from a new investor i.e Taiwanese chipmaker MediaTek. In addition to this, another $240 million which has been pumped by previous backers Alibaba, and SAIF Partners. This funding round values the digital payment service at a whopping $4.8 billion. Sharma plans to use this influx of funds to expand internationally into the States and United Kingdom.
