In a major push for financial inclusion, India is set to roll out Thumb Pay, a groundbreaking payment system that requires neither a smartphone nor an ATM card, allowing millions of non-digital users to enter the country’s booming digital economy.
The innovative system, developed by deep-tech startup Proxgy, links a user’s Aadhaar biometric identity directly with their UPI-enabled bank account, making a simple thumb impression the sole instrument for instant bank-to-bank transactions.
The payment process is designed to be frictionless and universal:
- Thumb as the Wallet: A customer simply places their thumb on a compact biometric reader device at a merchant’s shop.
- Instant Verification: The device uses the Aadhaar Enabled Payment System (AEPS) to securely verify the user’s identity.
- UPI Transaction: Once authenticated, the funds are instantly debited from the user’s Aadhaar-linked bank account via the Unified Payments Interface (UPI).
“This is a creative synthesis of India’s robust digital public infrastructure—Aadhaar and UPI,” said a spokesperson for Proxgy. “We are essentially bringing the power of UPI to every person’s fingertip—literally.”
Thumb Pay is specifically targeted at bridging the digital divide, offering a secure and convenient payment method for:
- Elderly Citizens who may not be comfortable with or own a smartphone.
- Daily Wage Earners and Labourers who may not carry a wallet or card while working.
- Rural and Remote Merchants where power and network connectivity are often unstable.
The device itself is a low-cost, battery-powered terminal that is affordable for small vendors and kirana shop owners. It is expected to drastically increase digital payment adoption among the segment of the population currently excluded from smartphone-based payment apps.
Following successful pilot trials, the company is currently seeking final regulatory clearances from the UIDAI (Unique Identification Authority of India) and the NPCI (National Payments Corporation of India), paving the way for a phased national rollout.
