India's NPCI Launches Biometric Authentication for UPI Payments
The National Payments Corporation of India (NPCI) has introduced biometric authentication for Unified Payments Interface (UPI) payments, offering a more secure and convenient alternative to the traditional PIN-based system. This move aims to enhance user experience, particularly for senior citizens and first-time users, while bolstering transaction security.
The Reserve Bank of India's concern over UPI scams related to PIN fraud has accelerated the need for alternative authentication methods. Until now, setting up a UPI PIN required entering debit card details or completing an Aadhaar OTP verification. The new biometric authentication, launched by M Nagaraju, financial services secretary, at the global fintech summit in Mumbai, simplifies this process through Aadhaar-based face authentication.
UPI, controlling 85% of all online transactions and facilitating around 20 billion transactions monthly worth over Rs 25 trillion, is the most popular digital payment method in India. Biometric authentication promises a more seamless, secure, and user-friendly experience. Banks, payment service providers (PSPs), and organizations implementing UPI are encouraged to adopt such alternative two-factor authentication methods to enhance security and reduce fraud risks while maintaining user convenience.
Customers can now opt for biometric authentication on UPI transactions, providing them with more control over their preferred mode of authentication. Each transaction using biometric authentication is independently verified by the issuing bank through robust cryptographic checks, ensuring a high level of security. This new feature is expected to further boost the popularity and safety of UPI payments in India.
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