See how PayTM is using Aadhaar eKYC to upgrade their wallet customers

For Paytm, E-KYC has had direct results on their ability to scale at an unprecedented rate to grow as the leader in Wallets category in India.


Even before becoming a Payments Bank, PayTM confronted the issues of paper-based KYC for their high value Rs 1 Lakh wallet which requires a KYC as mandated by RBI. The issue with paper-based KYC is the familiar story of identity theft, scaling of backend operations and improper documentation from the field which lead to huge operational inefficiency.


Till now, a lot of people in India had been kept out of the banking net because of the issues with documentation and verifiable identity. With Aadhaar available with more than 1 Billion Indians, all of this changed. And for Paytm, this was a boon.

“It is the most sanctified check. It gave us the ability to scale quickly and the ability to access authentic data”. For the company, an important consideration is that it solves the problem of identity and reliability in data quality.

Today, 87% of PayTM’s KYC’s are Aadhaar based. They’ve set up their systems to ensure KYC’s are done, both en masse and on request. They partner with vendors like Morpho and Mantratec, whose biometric devices are attached to the phone and given to agents to go into the field to do the KYC.

Companies and people can even request a KYC to be done and PayTM sends an agent right to them. Using the customer’s fingerprint, the authentication is immediate, and the individual is instantly Aadhaar verified, and their wallet is automatically upgraded to the INR 1 lac limit.

In the words of Aditi Sholapurkar from Paytm, the e-KYC is leading to some of the most “fantastic, exponential growth” in the onboarding of their future payment bank users.

3 thoughts on “See how PayTM is using Aadhaar eKYC to upgrade their wallet customers

  1. I think this (“biometric devices are attached to the phone and given to agents to go into the field to do the KYC”) still doesn’t solve the huge inefficiencies we see in gathering KYC details. Whilst the paper layer has been removed, there is still the issue of sending agents to collect KYC which in itself is a very manual process with inherent inefficiencies. The problem of wasted fuel, traffic, delays and customer not available to collect biometrics or biometric devices malfunctioning, theft and loss of devices, misuse of devices by agents are just a few cases where we see inefficiencies creeping up again.

    I am of the opinion that if I’d like to provide my KYC to PayTM, I should be able to do it at the comfort of my home using my mobile device. This is precisely the problem we have solved through our biometric solution that we have built on top of the Aadhaar platform to interested service providers.

    1. dear shankar,

      un-assisted E-KYC is possible provided the AADHAR account holder has a mobile number registered with AADHAR. if i understand correctly less than 35% of all people enrolled with AADHAR have registered their mobile number. Due to this, the likes of a PAYTM are forced to send someone to your home/office to conduct a biometric (fingerprint/IRIS) E-KYC.

      the only real solution to un-assisted E-KYC are devices with AADHAR certified biometric scanners (thumbprint or IRIS).

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