In a move aimed at streamlining digital payments, the Reserve Bank of India (RBI) has issued new guidelines that will significantly change how users make UPI transactions. Starting October 8, UPI users across India will be able to authenticate payments using fingerprint or face scan on apps like PhonePe, Paytm, and Google Pay, according to a report by Reuters.
The feature leverages Aadhaar-linked biometric data, offering a faster and more seamless alternative to entering a UPI PIN. This shift is expected to enhance both convenience and security for millions of users, as biometric authentication becomes a standard option on the country’s most popular payment platforms.
The National Payments Corporation of India (NPCI) is poised to launch a new feature at the ongoing Global Fintech Festival in Mumbai. This marks a significant advancement and will benefit individuals who conduct numerous transactions daily and prefer not to enter a PIN each time. The feature will utilize Aadhaar-based biometric authentication to enable PIN-less UPI payments.
Users will have the option to verify a payment by scanning their fingerprint or using facial recognition when initiating a payment on any UPI app. This development follows the RBI's issuance of guidelines allowing more authentication methods beyond PINs.
Additionally, industry experts suggest this move could reduce online fraud cases, as biometric data is nearly impossible to replicate. From a user standpoint, the feature will streamline UPI payments, eliminating the need to enter a PIN for every transaction.
So far, no major payment app has announced when the feature will be available, but it is anticipated that major players like Google Pay, PhonePe, and Paytm will adopt it once officially launched. It is certain that this new payment verification method will pose a significant challenge to scammers.