E X P E R T
F O R E C A S T regulators , through a common platform using the plug-and-play model . And this will essentially help the under-banked communities more ( read farmers , MSMEs etc ), as lending institutions will now have access to borrowers ’ digitised records lying with state or central databases , account aggregators , credit bureaus , financial institutions and so on .
E X P E R T
F O R E C A S T regulators , through a common platform using the plug-and-play model . And this will essentially help the under-banked communities more ( read farmers , MSMEs etc ), as lending institutions will now have access to borrowers ’ digitised records lying with state or central databases , account aggregators , credit bureaus , financial institutions and so on .
Digital wallet and interoperability
India ’ s widespread adoption of digital wallets is paving the way for their seamless integration with card-based payment systems , eliminating silos and offering consumers unparalleled convenience . As per a GlobalData report , the value of mobile wallet transactions in India expanded at a compound growth rate of 72.1 % to reach US $ 2.5 trillion , from 2019 to 2023 . Digital wallets now make up for 25 % of total payments in India , while UPI dominates 80 % of retail transactions ( RBI Payments Data 2024 ). Interoperable digital wallets that support multiple payment networks and protocols , enabling users to transact across various merchants and service providers , is the way forward , and 2025 will see more action on that front .
Face-based payments
The Reserve Bank of India ’ s ( RBI ) move to allow non-OTP methods , such as biometric authentication for the second payment factor , opens the door to face-based payment systems . Facial recognition can offer a seamless and secure alternative to traditional OTP-based methods , eliminating the dependence on mobile networks or SMS delivery .
In the Indian context , this innovation could significantly enhance the user experience , especially in regions with inconsistent mobile connectivity . It also addresses challenges like SIMswapping fraud or delays in receiving OTPs . Facial recognition leverages advanced AI and biometric data , ensuring both convenience and security , critical in high-volume and low-value transactions like those in retail or transit systems .
This shift aligns with India ’ s growing digital payment ecosystem , where Aadhaarenabled authentication has already laid a robust foundation for biometric verification . For merchants , it reduces friction at checkout points , and for consumers , it means faster transactions without additional devices . � www . intelligentfin . tech
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