Indian private sector lender Federal Bank has launched SmilePay, a facial recognition-based payment system.
Presented at the Global Fintech Fest by Federal Bank CEO Shalini Warrier, SmilePay allows customers to make payments using just their face.
The innovative technology, built on UIDAI’s Bhim Aadhaar Pay platform, eliminates the need for cash, cards or mobile devices, marking a new era in the Indian financial landscape.
Testing technology with large corporations
The initial launch of SmilePay is being tested in collaboration with two of India’s leading corporations, Reliance Retail and Svatantra Micro Housing (SMHFC).
According to the bank, these companies have begun to offer this new payment method at select points of sale and branches, becoming the first to introduce this advanced technology to their customers.
“The concept of moving from cash to cards, then to QR codes to wearables, and now to paying with just a smile, is an exciting customer experience in the making,” added Indraneel Pandit, CDO, Federal Bank.
Key features and benefits of SmilePay
SmilePay offers several advantages that differentiate it from traditional payment methods:
1. Unmatched convenience: Customers no longer need to carry physical payment tools such as cash, cards or mobile devices. Payments can be made with just a facial scan.
2. Increased trading efficiency: The system helps to effectively manage crowds and ensures seamless processing of transactions at counters.
3. Robust Security: The technology is powered by UIDAI’s facial authentication service, ensuring that all transactions are secure and trustworthy.
4. User-friendly interface: A simple and intuitive interface allows customers to complete transactions quickly and easily.
Indraneel Pandit, Chief Digital Officer at Federal Bank, expressed excitement about the potential of this technology to transform customer experiences, noting that the evolution from cash to cards, QR codes and now facial recognition marks a significant shift in the way payments are made.
How SmilePay works
SmilePay works through the FED MERCHANT app, where merchants can initiate payments by entering the customer’s Aadhaar number. The app then uses the camera to scan the customer’s face and verify it with the facial data stored in the UIDAI system.
Once verified, the payment is processed instantly and the amount is debited from the customer’s Aadhaar account and credited to the merchant’s account maintained with Federal Bank.
Currently, the system has a transaction limit of Rs 5,000 per transaction and Rs 50,000 per customer per month.
Future expansion and availability
Initially, SmilePay will be available exclusively to Federal Bank customers, requiring both merchants and customers to have accounts with the bank.
However, Federal Bank plans to expand this service further by exploring strategic partnerships and expanding its reach across the country.
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