How will PhonePay gain from allowing customers to activate UPI with Aadhar?

The Aadhar-based e-KYC flow has now streamlined the registration onboarding procedure. Previously, in the UPI onboarding flow, a debit card was required to set up a user’s UPI PIN for the registration procedure. People who did not have their debit card with them were denied access.

PhonePay, an instant payment provider, now supports UPI Corporation’s activation with an Aadhar card via OTP authentication. The payment app claims to be the first UPI TPAP app to implement the Aadhar-based UPI onboarding procedure. This implies that instead of submitting debit card details, users can choose the Aadhar card option on the PhonePe app for the onboarding process and enter the last six digits of their Aadhar card to begin the onboarding process.

“We are pleased to be the first financial platform to enable Aadhar-based verification for our consumers, making UPI onboarding flows even more simple and inclusive,” said Deep Agarwal, Head of Payments at PhonePe. We believe that this is a really forward-thinking step by the RBI, National Payments Corporation of India (NPCI), and UIDAI, and it is an excellent illustration of the digital financial inclusion that UIDAI’s Aadhaar card program has been able to drive.”

According to Agarwal, the new Aadhar-based onboarding method will assist extend the whole UPI ecosystem while also bringing new customers into the digital payments fold. “UPI has become a worldwide model, and nations all over the world are attempting to implement it.” “We are working closely with NPCI to take UPI international in the future,” Agarwal adds.

Previously, in the UPI onboarding flow, a debit card was required to set up a user’s UPI PIN for the registration procedure. People who did not have their debit cards with them were denied access. The Aadhar-based e-KYC flow has now streamlined the registration onboarding procedure.

PhonePay Digital Payment platform users can begin the onboarding process by selecting the Aadhar card option on the PhonePe app and entering the last six numbers of their Aadhaar card. To complete the authentication process, these users will receive an OTP from UIDAI and their respective bank.

“With the addition of Aadhaar onboarding for UPI, this barrier will be lifted, allowing previously under-served groups to enjoy the convenience and benefits of digital payments,” the business said in a statement.