Saturday, March 17, 2012

UID usage in credit /debit card industry

UID (Aadhaar) will be a unique number which will be issued to every resident of India. Currently as per available data 13.46 crores residents have been issued Aadhaar number and these numbers will swell rapidly in coming days . This unique identity will open new vistas for streamlining and improving efficiency of many existing services.

In this post I would like to touch upon its usage in credit/debit card transctions. Currently credit/debit card transactions on POS assume that card holder is real card owner. No authentication check is done before transaction. This makes usage of credit/debit card very unsafe for card holder. Credit card industry is criticized severely by RBI and various customer forums for this. Though on web most of the credit card companies and now using two factor authentications, first by verifying
your filled details and then by authenticating using PIN. This feels somewhat
more secure.
UID can be used to plug this security hole for credit card. UIDAI provide authentication services for a given UID. A person can be authenticated using below combination:
1. UID+biometric(Finger Print)
3. UID+Demographic attribute(name, address,DOB etc..)
4. UID+bio+OTP+Demographic
First two options are quite
suitable for credit/debit card industry perspective. Below are indicative
process flows:
Using UID+biometric:

Using UID+OTP:

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