Google Pay allows users to validate UPI using Aadhaar authentication

Company says it will not store Aadhaar numbers and will act as a facilitator for validation

Google Pay, the digital payments platform, said on Wednesday users can now activate their UPI (Unified Payments Interface) accounts without a debit card, using Aadhaar-based authentication via the National Payments Corporation of India (NPCI) to do so.

The announcement comes days after Google Pay’s competitor, PhonePe, launched a similar service. Google Pay users wanting to activate UPI via Aadhaar will need to ensure that their phone numbers registered with UIDAI and bank are the same. Their bank accounts have to be linked with Aadhaar.

The new feature is available for the account holders of 22 banks that support Aadhaar-based one-time passwords for validation of UPI. Sharath Bulusu, director of product management at Google, said the new feature will help in bringing simplicity and convenience to the users.

“Aligned with the Government's vision to drive financial inclusion, this feature will further strengthen our efforts to drive deeper penetration for digital payments in India. Over the years, we are very heartened by the ready adoption of digital payments we have witnessed in the country, and this feature will help boost the UPI ecosystem even further,” said Bulusu in a press statement.

When users install the Google Pay app, they will have the option to select between debit cards or Aadhaar-based UPI activation. Google Pay will not store Aadhaar numbers and will act as a facilitator for validation, the company said.

Users who prefer authentication through Aadhaar will need to enter the first six digits of their Aadhaar number. They will then need to enter a one-time password received from the Unique Identification Authority of India (UIDAI) and their bank. Subsequently, their respective bank will complete the process and they can set their UPI PIN.

Customers will then be able to use the Google Pay app to make transactions or check balances. Once a user enters the first six digits of an Aadhaar number, it is sent to UIDAI via NPCI for validation. This process ensures the safety of users' Aadhaar numbers.