Negative pin codes are regions of the country in which ecommerce companies do not deliver as they fear being cheated or their delivery boys robbed. Amazon has limited cash-on-delivery offerings to under Rs 5,000 in parts of Uttar Pradesh, while rival Flipkart has stopped delivering goods over Rs 10,000 to the same state, media reports have said.
“Ecommerce companies don’t want to take the risk of people ordering goods and not paying or saying they have ordered for fun. But blacking out an entire region is also hard. So we are in talks with one to find a way to use the data from the Aadhaar database to provide a second-factor authentication in such regions,” Rajeev Arora, chief technology officer at FinoPaytech, told ET. He declined to name the ecommerce firm as the discussions were confidential and at an early stage. Arora added that the verified data in the Aadhaar database would also help weed out people who make multiple orders just to return them, causing financial hardship to a sector that is already struggling to wean customers off deep discounts.
FinoPaytech was formed in 2006 to help financial institutions reach those without access to bank accounts. It is promoted by 24 public and private sector banks and insurance companies such the Life Insurance Corporation of India.
“It could be one way but not everyone will want to register with an Aadhaar number because you also want to make the buying process easy. Ecommerce companies are looking at ways to cut fraud and currently they are looking at all options,” a consultant with a big four consultancy said.
He declined to be identified because he works with ecommerce companies.