Biometric Payment Systems in India – A Case Study of ThumbPay by Proxgy

Abstract

The rapid evolution of the digital payment ecosystem in India is changing the way citizens access and use financial services. Developed by Proxgy, ThumbPay represents an innovative leap in integrating Aadhaar-based biometric authentication with the Unified Payments Interface, UPI, thereby allowing users to authorize transactions with just their fingerprints. Contrasting with the Amazon One or Tap-and-Pay by Tencent, which have an appeal toward convenience and luxury, ThumbPay has been created with a vision for accessibility and inclusion—solving the problems of unbanked populations and those who cannot use smartphones. This paper examines the technical framework, the model of operation, and the implications of ThumbPay regarding the promotion of financial inclusion in India. It also critically analyzes various issues related to data privacy and security and its readiness concerning regulatory guidelines under the frameworks provided by the RBI, NPCI, and DPDPA (2023). The study concludes that biometric payment systems, like ThumbPay, might act as a transformative agent in achieving an inclusive, secure, and transparent digital financial ecosystem in India.