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Category: Risk/Compliance

Super Sloppy Security Gushes Aadhaar PII

In many respects, India’s 9-year-old Aadhaar national ID system is a global model for simplifying payments, banking and payroll operations. It was designed to be a comprehensive database allowing easy access to bank accounts and other payments mechanisms. As a concept, it worked brilliantly.

But according to data from a report from the Centre For Internet and Society, it also serves as a world-class example of security recklessness, with methods so sloppy that they could have exposed sensitive data about almost a quarter of a billion Indian citizens.

India’s Rapid Digitalization Means More Inclusion – and More Risk

We continue our series on frictionless underwriting this week with a closer look at India’s rapidly changing environment and what it means for onboarding and monitoring merchants.

With the advent of rapid digitalization in India, the race has been on for payments providers to board many merchants quickly.

Companies have responded to the government’s aggressive moves toward a digital economy by announcing a slew of new initiatives intended to bring small merchants into the fold.

Worldwide Focus on Fintech Regulation Signals Opportunity for PFs

In the U.S., regulators, businesspeople and other groups are in the midst of a debate about how financial technology firms should be regulated. The OCC’s proposed special purpose national bank charter for fintech companies is one example; a white paper outlining policy objectives around the fintech sector issued by the Obama administration at the end of its term is another.

But the U.S. is hardly the only place where the deliberation over just how to oversee this rising sector is taking place. Financial technology is on the minds of governments worldwide, which signals real opportunity for payment facilitators.

Innovation In ID Technology Speeds KYC In India

Indian payment facilitator Paytm will be onboarding customers for its payments bank with eKYC enabled by India’s voluntary national identification program, Aadhaar.

As of Sep. 5, 2016, 87 percent of India’s 1.2 billion people had registered for the unique 12-digit number. To register, residents have to bring three forms of identification (proof of identity, proof of address, proof of birthdate) to an enrollment center, where their fingerprints and irises will be scanned.

India’s Razorpay Onboards A Month Faster Than Rivals

Onboarding merchants in less than a week, nearly a month quicker than what the CEO says is the industry standard, Indian payment facilitator Razorpay has used that impressive stat to sign up more than 8,000 Indian merchants, including mom-and-pops and global chains such as Papa John’s. Not bad for a company that wasn’t even a Mastercard payment facilitator until last year.

A member of Mastercard’s Start Path program since 2015, Razorpay is precisely how the card brand envisions signing 40 million merchants by 2020. The challenges are as plentiful as the opportunities.

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