But once you have Aadhaar authentication on the phone, then the second factor can be biometric authentication through Aadhaar," said Nilekani. The proposal for smartphone makers includes a "hardware secure zone" where biometric data will be encrypted and sent out. "The reluctance to make changes at the vendor level are mainly coming from a desire for control of biometric data for strategic and commercial purposes. The most immediate use for the Aadhaar-enabled smartphones is the Unified Payment Interface (UPI), the new payment system that allows money transfer between any two parties using mobile phones and a virtual payment address. It will not leave the electronic secure zone without encryption, and every phone doing Aadhaar authentication will be registered in the UID system.

Source: Economic Times August 09, 2016 22:07 UTC