Federal Bank launches India’s first facial payment system SmilePay

Indian private sector lender Federal Bank has launched SmilePay, a facial recognition-based payment system.

Unveiled at the Global Fintech Fest by Shalini Warrier, Executive Director of Federal Bank, SmilePay allows customers to make payments using only 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.

Piloting the technology with major corporations

The initial rollout of SmilePay is being piloted in collaboration with two of India’s major corporations, Reliance Retail and Svatantra Micro Housing (SMHFC).

According to the bank, these companies have begun offering this new payment method at select outlets and branches, making them the first to introduce this advanced technology to their customers. 

“The concept of moving from cash to cards to QR codes to wearables, and now just a smile to pay, 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 set it apart from traditional payment methods:

1. Unmatched Convenience: Customers no longer need to carry physical payment tools like cash, cards, or mobile devices. Payments can be made with just a facial scan.
2. Enhanced Merchant Efficiency: The system helps in effective crowd management and ensures seamless transaction processing at counters.
3. Robust Security: The technology is powered by UIDAI’s face authentication service, ensuring that all transactions are secure and reliable.
4. User-Friendly Interface: A simple and intuitive interface allows customers to complete transactions swiftly 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 how payments are made.

How SmilePay works

SmilePay operates through the FED MERCHANT application, where merchants can initiate payments by entering the customer's Aadhaar number. The app then uses the camera to scan the customer's face, verifying it against stored facial data in the UIDAI system.

Once verified, the payment is processed instantly, with the amount debited from the customer’s Aadhaar-seeded account and credited to the merchant’s account maintained with Federal Bank.

The system currently has a transaction limit of Rs 5,000 per transaction and Rs 50,000 per customer monthly.

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 extend this service further by exploring strategic partnerships and expanding its reach across the country.