India's Payment System Gets a Boost: Biometric Authentication Streamlines UPI Transactions

Biometric Authentication Gains Traction in India's Digital Payments Ecosystem

Biometric authentication is rapidly gaining momentum in India's digital payments ecosystem, with banks and fintechs shifting away from one-time passwords (OTPs) to fingerprint and facial recognition for secure transactions. ICICI Bank and Axis Bank are among the leading players to have rolled out such features, enabling users to authorise payments seamlessly.

The shift to biometric authentication is aimed at enhancing speed, convenience, and security, particularly for everyday payments. This move comes against the backdrop of rising digital payment fraud, with reported losses exceeding Rs 1,400 crore in FY24, according to RBI-linked data. In response, the Reserve Bank of India issued guidelines in September on strengthening authentication mechanisms for digital transactions, encouraging the adoption of biometrics and other robust methods over SMS-based OTPs. The norms mandate that all payment system providers and participants, including banks and non-bank entities, comply with these directions by April 1, 2026.

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Players offering Biometric UPI authentication

ICICI Bank has enabled biometric authentication for Unified Payments Interface (UPI) transactions on its iMobile app, allowing customers to approve payments of up to Rs 5,000 using fingerprint or facial recognition instead of a UPI PIN. The feature is available in the latest iMobile app versions for Android v30 and iOS v28.2. Android users can authorise transactions via their fingerprint, and iOS users via facial recognition.

Similarly, Flipkart has teamed up with Axis Bank and PayU to roll out biometric authentication for card payments on its platform. Currently available to Axis Bank cardholders, the feature enables users to approve transactions using Face ID or fingerprint on compatible devices, eliminating the need for SMS-based one-time passwords. CRED has also rolled out biometric authentication for UPI payments, enabling users to approve transactions through facial recognition or fingerprint instead of entering a PIN. The feature, launched on March 25, 2026, is available across both iOS and Android devices.

To activate biometric authentication on the iMobile app, users need to log in, click on UPI payments, choose UPI settings, select the account number, and enable biometric authentication. The process requires users to enter their UPI PIN for verification and authenticate their device-level biometric data.

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