The National Payments Corporation of India (NPCI) has announced the rollout of biometric authentication for UPI payments, enabling users to verify transactions using fingerprint or facial recognition instead of the traditional UPI PIN. The feature was launched by M. Nagaraju M, Secretary, Department of Financial Services, during the Global Fintech Fest 2025 in Mumbai.
The new authentication method will be performed on-device, ensuring user privacy and security. Customers who opt in will be able to use biometrics not only for approving payments but also for setting or resetting UPI PINs and for cash withdrawals at ATMs using UPI. NPCI described the upgrade as a secure, seamless, and user-friendly alternative to PIN-based verification, noting that every transaction will be independently verified by issuing banks through robust cryptographic checks.
The initiative is expected to simplify onboarding for senior citizens and first-time users, as it eliminates the need for debit card details or Aadhaar-based OTP verification. With Aadhaar-linked facial authentication, users can set up UPI access more easily, promoting financial inclusion across demographics.
The move comes amid rising concerns from the Reserve Bank of India (RBI) over PIN-related frauds and UPI scams. The central bank has urged financial institutions to adopt alternative second-factor authentication methods, such as biometrics and behavioral risk patterns, to strengthen digital payment security.
Indian startup FaceOff Technology is among the innovators in this space, developing FacePay, a solution powered by Biological Behaviour Algorithms and Neuro-Chain technology, aimed at combating identity fraud.
Currently, UPI dominates India’s digital payments ecosystem, accounting for 85% of all online transactions and facilitating 20 billion transactions monthly, valued at over ₹25 lakh crore. The introduction of biometric authentication marks a major step toward a more secure and inclusive digital payment future for India.
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