Unified Payments Interface (UPI) users may soon be able to authenticate transactions using biometrics, such as facial recognition and fingerprints. This will come as an alternative to entering a personal identification number (PIN). The move comes amid growing concerns around PIN theft and fraud and at a time when UPI accounts for over 80 per cent of digital transactions in the country. NPCI is preparing to roll out this update to UPI, which is expected to enhance security and convenience.
 This change is still in development, but once it is implemented, insiders suggest it could mark a major shift in how digital transactions are handled in India—especially given UPI’s dominance in the space.
Is PIN not foolproof?
UPI currently accounts for more than 80% of digital payments in India. While entering a PIN is still the standard method for authenticating a transaction, it’s not foolproof. PINs can be forgotten, guessed, or stolen, and that is leading to a growing concern about security breaches and fraud.
Biometric authentication could solve some of these problems. Since the user’s fingerprint or face can’t be easily copied, it offers a layer of protection that’s tougher to bypass.
According to industry sources familiar with the plans, this method could actually be safer than traditional one-time passwords or PINs, which are vulnerable to phishing or social engineering attacks.
Besides security, there is also the question of user experience. Removing the need to type in a PIN every time, the user can make transactions faster—especially for people who use UPI multiple times a day.Â
