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Covid-19 provides a big boost to online transactions, video KYC adoption

Video KYC: The coronavirus pandemic has changed everyone’s life. People are now adopting new practices including online education, investments, or any other online transactions. Moreover, this pandemic is one of the leading causes that has increased the adoption of digital payment platforms.

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The coronavirus indued lockdowns have forced most of the offices and market places to remain close due to which people are enjoying shopping and other transactional activity from their home. Thus, increasing the use of digital payment platforms.

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According to the experts, these digital platforms are being used mainly for utilities and paying bills. A new trend is also observed where users are making payments to their family members, friends, and household staff.

What Happened?

As the equity market witnessed a drastic fall during the coronavirus outbreak in India, investors grabbed this unexpected opportunity by investing with the help of online payment platforms. At the same time, new investors also started investing in the equity market after registering themselves through video KYC.

Not only share markets, but the video KYC platforms have also been adopted by several other service providers such as banking, fintech, forex, housing finance, lending, wallets, etc. The digital payment platforms helped these service providers to provide uninterrupted service during the shutdown.

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What is the reason behind this mass adoption?

The first and foremost reason behind this rapid adoption of digital payment platforms is the ongoing crisis that has pushed everyone inside their homes and now people are relying on online services. Other reasons like the simplicity, speed, and safety associated with the Unified Payments Interface (UPI) has further increased its popularity.

How a full video KYC is done?

A full video KYC generally involves the following steps:

  1. Face match – where the face of the applicant is matched with the photograph on a valid identity document but on a video call.
  2. Liveliness detection – this step confirms that the person on the video call is a live person.
  3. Lat-Long – is done in order to check the actual location of the applicant.
  4. Document verification is also done on the video call.

Some Video KYC Platforms

  • Kwik ID
  • Karza Technologies

 

Also read: Reliance Industries on Saturday said global alternative asset firm TPG will invest Rs 4,546.80 crore in Jio Platforms