PayNearby, a prominent digital financial services provider in India, has reported that 40 percent of women are now using Aadhaar Enabled Payment System (AePS) face authentication technology for cash withdrawals, marking a significant advancement in digital financial inclusion. The adoption rate represents substantial progress since the expansion of Aadhaar face authentication to private sector applications in recent years.
The AePS platform enables secure financial transactions through Aadhaar numbers, with face authentication providing an additional security layer to verify user identity. The biometric authentication method helps prevent unauthorized access while making financial services more accessible to women who may have previously faced barriers to traditional banking. The system builds upon India’s established biometric ATM infrastructure, which has already demonstrated success in enabling card-free transactions.
The adoption rate indicates broader trends in India’s digital transformation, particularly in financial services. AePS face authentication has become a key tool for expanding access to banking services, especially in areas where traditional banking infrastructure may be limited. The advancement corresponds with the country’s recent launch of a digital credit assessment system and other initiatives aimed at modernizing financial services.
The growth occurs against the backdrop of India’s expanding digital payment ecosystem. The AePS system, developed by the National Payments Corporation of India (NPCI), allows users to conduct basic banking transactions through biometric authentication at authorized banking correspondents. The NPCI has been actively enhancing its digital infrastructure, including the recent development of an enhanced Central KYC Registry to strengthen identity verification processes.
The increased adoption of digital financial services represents progress in financial inclusion while highlighting the importance of maintaining robust security measures. The financial services sector has observed a parallel rise in sophisticated online fraud attempts, emphasizing the need for continued security awareness among users. The concern has led to enhanced security protocols within the AePS system, including multi-factor authentication methods.
The implementation of face authentication technology in AePS forms part of a larger technological transformation in India’s financial services sector, which includes various initiatives aimed at expanding digital banking access across demographic groups. The transformation is supported by the government’s broader digital identity infrastructure, including the Aadhaar Governance Portal, which streamlines authentication processes for both public and private sector services.
Sources: Business World, Indian Retailer, Business Today, CXOToday
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