India's largest private sector lender ICICI Bank announced that it is acquiring a minority stake in Tapits Technologies, a Mumbai-based early stage startup that helps merchants accept digital payments through Aadhaar biometrics, reports Business Standard.

ICICI is investing Rs 99 lakh in Tapits Technologies to acquire 9.9% stake in the startup, which had revenues of less than Rs 1 lakh for financial year 2016-17.

The transaction is expected to complete by February 2018.

"Tapits enables merchants to accept digital payments from customers through biometric authentication using Aadhaar enabled payment system," the bank said in a regulatory filing, adding objective of the investment is to promote Aadhaar-based payments.

Founded in 2016 by Pratyush Halen, Tapits is a startup based at Bombay Stock Exchange working with top banks to enable Merchants to accept digital payments using Aadhaar Pay, UPI and do bill payments.

The startup has its flagship point of sale device called 'FingPay', which can make payments "card-less, cashless and mobile-less".

Fingpay enables Merchants to collect digital payments from customers using Aadhaar Pay and UPI. It also enables them to do customer's bill payments like recharges, electricity, Insurance premium's etc. The product is fit for places where payment is happening and also for agents who can roam around and collect payments.

Fingpay has an android application and web portal for Merchants where they can connect a biometric reader to mobile or PC and start accepting payments. The product is now live with over 150 merchants.

This investment has now finally ends the long time speculation on a positive note that ICICI will invest in fintech startups in India as part of its strategic move to help it serve its customers better.

Last month, a Bengaluru-based payment startup iKaaz was acquired by Singapore-based Uber rival Grab.

At the same time, IndusInd Bank and Dynamics Inc., at the 2018 Consumer Electronics Show announced plans to introduce the first battery-powered, interactive payment cards to the Indian market in 2018.

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