NPCI Unveils Biometric Authentication for UPI Payments, Boosting Security and Ease of Use
NPCI has unveiled biometric authentication for UPI payments, a move that could revolutionise digital transactions in India. The new feature, announced by M Nagaraju, financial services secretary, at a global fintech summit in Mumbai, simplifies onboarding for senior citizens and first-time users by eliminating the need for debit card details or Aadhaar OTP verification.
UPI, which controls 85% of all online transactions in India, processes around 20 billion transactions worth over Rs 25 trillion every month. The introduction of biometric authentication addresses concerns about PIN-related fraud and aligns with the Reserve Bank's recommendation for alternative second-factor authentication methods. Each UPI transaction using biometric authentication is independently verified by the issuing bank for safety. Customers can choose to opt in for biometric authentication, giving them control over their preferred mode of authentication. The new feature, which was introduced in March 2021, uses face and iris recognition for large-value transactions, making it more seamless, secure, and user-friendly than PIN-based authentication. India leads the world in digital payments with an adoption rate of 87%, processing over 18,580 crore UPI transactions worth Rs 261 trillion in financial year 2025.
Biometric authentication for UPI, performed on-device, can replace the PIN for transactions, further boosting India's digital payment ecosystem. This move is expected to enhance user experience, security, and convenience, driving further growth in digital transactions.
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