
PhonePe new UPI features: Fintech platform PhonePe will now allow its customers to activate UPI services on its app by using Aadhaar-based OTP authentication. PhonePe said its customers can now log in their Aadhaar card details on the PhonePe app for the onboarding process, instead of their bank account details.
Earlier, the customers need to log in their debit card details for the registration process, which was used to set up the user's UPI PIN. This came as a hurdle for those who didn’t have a debit card.
In a statement, the company said it is the first UPI Third Party Application Provider (TPAP) App to roll out the Aadhaar-based UPI onboarding services, which would help more and more customers to use the services for monetary transactions.
“The addition of Aadhaar onboarding for UPI will do away with this restriction, and allow previously under-served populations to experience the convenience and benefits of digital payments," stated the company in a statement.
How will it work
PhonePe users will have to log in the last six digits of their Aadhaar card for the onboarding process. The users would receive an OTP from UIDAI and their respective banks to complete the authentication steps. Once done, the customers can start using the app for monetary transactions.
Deep Agarwal, Head of Payments, PhonePe, said, “We are the first fintech platform to offer Aadhar-based authentication for our users, making the UPI onboarding flows even more simple and inclusive. We believe this is a very progressive move by RBI, NPCI, and UIDAI and is a great example of the digital financial inclusion that UIDAI’s Aadhaar program has been able to drive."
He added that UPI is a global success in terms of its inclusiveness and reach. He said that PhonePe is working closely with NPCI to take UPI international.