Mobile wallet and e-commerce company, Paytm has announced and started to verify their user names with an Aaadhar card based on electronic know your customer or eKYC process.
Owned by One97 Communication Ltd, Paytm has decided to opt for an easier way for the verification process.
What the company has to say
The CEO of Paytm said that they are all set to build a customer system that will bring together around half a billion Indians to the mainstream economy. This would make the verification of the customer process completely paperless and instant.
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The bank and wallet providers have to necessarily carry out a type of customer verification process while building account based relationships and tracking transactions. This knowing the customer procedure helps in tracking fraud, money laundering, terrorist financing, and others. The traditional KYC process includes filling in of forms, photographs, copies of address proof and other documents. All hi makes the verification process long and hectic.
For making this KYC procedure much simpler, the Paytm Company has chosen to go for an Aadhaar based eKYC process. With the help of Aadhaar the process will be made extremely easy and secure. With the help of this system the customer just needs to provide their Aadhaar card number and the identity of the customer will be verified with the help of the biometric scan of fingerprint and iris that is available in the Aadhaar database.
It has been said that the company will also be using a major omni-channel approach for verifying the customers. The company has announced that whenever the Paytm customers will opt for an up gradation, they will either have to visit the closest Paytm centers or have to request for a Paytm agent to visit their house or at the given address.
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The process will be secure as the biometric details will be used to verify the account. This will reduce the chance of a fake account. Experts are of the view that with this move of Paytm around 25 million new users would be added to the network of Paytm. It will bring new opportunities for the company.