Cash, cards, and mobiles might soon be history. This new technology lets you pay using facial recognition. Private lender Federal Bank has rolled out SmilePay, a facial authentication technology that allows customers to make payments using just their facial recognition. The system, introduced at the Global Fintech Fest, is the first of its kind in India, and it operates on the government-backed BHIM Aadhaar Pay infrastructure.
How does it work?
SmilePay replaces the need for cash, cards, or mobile devices, instead relying on advanced facial recognition software. The bank has positioned this technology as a major step forward in streamlining the payment process for customers and merchants alike.
Shalini Warrier, Executive Director of Federal Bank, who launched the technology, said, “SmilePay™ is more than just a payment method; it represents a move towards a more integrated financial ecosystem.”
Pilot programme underway
The facial recognition payment system is currently being trialled by two major players: Reliance Retail and Svatantra Micro Housing (SMHFC), led by Ananya Birla. Both companies have begun implementing SmilePay™ at selected outlets and branches to assess its effectiveness and customer acceptance.
“The shift from cash to cards, to QR codes, and now to facial recognition is an exciting journey in enhancing customer experience,” said Indraneel Pandit, Chief Digital Officer at Federal Bank.
Key features of SmilePay™
Convenience: Transactions can be completed without the need for physical payment methods.
Merchant efficiency: The technology aids in managing queues and speeds up transaction times.
Security: Powered by UIDAI’s secure facial authentication, ensuring the safety of each transaction.
User-friendly: Customers only need to scan their faces to make a payment.
Currently, SmilePay™ is available exclusively to Federal Bank customers, with both merchants and users required to have accounts with the bank. The bank plans to expand the service and explore new partnerships to widen its reach in the near future.
BHIM Aadhaar Pay is a digital payment system in India that allows merchants to accept payments from customers using their Aadhaar number (a unique identification number issued by the Indian government) and biometric authentication, such as a fingerprint or iris scan. It is part of the broader Bharat Interface for Money (BHIM) initiative, which promotes digital transactions in the country.
Here’s how it works:
1. The customer’s Aadhaar number is linked to their bank account.
2. Instead of using a debit or credit card, customers authenticate the transaction by providing their fingerprint or iris scan.
3. The merchant uses a device (such as a smartphone or tablet) with a biometric scanner connected to the BHIM Aadhaar Pay app. The customer’s biometric data is used to authorise the payment.
4. The system enables payments directly from the customer’s bank account without the need for a physical card, mobile wallet, or any other intermediary.
BHIM Aadhaar Pay is particularly beneficial in rural areas where people may not have access to debit or credit cards but do have Aadhaar-linked bank accounts. It also supports the government’s push towards a cashless economy by making digital payments accessible to a broader population.
First Published: Aug 30 2024 | 4:18 PM IST
