India’s Unified Payments Interface (UPI) is launching a feature that allows users to approve payments using a fingerprint or facial scan.
Previously, shoppers were required to enter a PIN to authorize transactions. However, the Reserve Bank of India (RBI) has requested an alternative authentication method to make UPI transactions faster and more secure for users of its real-time payments system.
Biometric authentication will be available to users who choose to opt in, and their data will be stored in Aadhaar—a system operated by India’s government.
Benefits and Challenges
The biometric verification movement has gained traction as consumers have grown comfortable with the technology through frequent use on mobile devices. Biometrics can also greatly reduce friction at checkout, streamlining the payment experience.
Beyond convenience, biometric authentication offers the potential to reduce fraud—a key factor driving its launch in UPI. The RBI noted that numerous UPI scams have cropped up to exploit the existing PIN-based authentication system, underscoring the need for stronger security measures.
Despite these advantages, several challenges remain. Consumers must first be made aware of the program and choose to opt in. Additionally, merchants and payment processors need to have the proper infrastructure in place to support biometric transactions.
There are also ongoing concerns about the protection of consumer data. The National Payments Corporation of India (NPCI)—which operates UPI—emphasized that each transaction will be “independently verified by the issuing bank using robust cryptographic checks.”
The NPCI further noted that while creating a PIN for UPI previously required entering debit card details, no card will be needed when opting into the new biometric program.
Moving Beyond Pilots
At this stage, many biometric pilots and projects have been launched around the world, but few have reached widescale implementations.
This is why the UPI launch represents a significant step for biometric authentication in payments. UPI processes roughly 20 billion transactions per month, and the NPCI accounts for nearly half of the world’s payments.
One of the main reasons UPI has grown into such a global powerhouse in just seven years is its relentless drive to introduce new features and functionalities—and to expand into new regions.
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