NPCI Introduces Biometric Authentication for UPI Payments, Replacing PINs with Fingerprint and Face ID

Highlights

• NPCI now allows users to approve UPI transactions using fingerprint or Face ID.
• Biometric verification simplifies UPI setup and can also be used for ATM withdrawals, PIN resets.
• NPCI’s move enhances fraud protection using device-level cryptographic checks and bank-side verification.

Caption – Now UPI transactions can be done with fingerprint or Face ID. (Image credit – Unknown)

The National Payments Corporation of India (NPCI) has officially rolled out biometric authentication for UPI payments. It will now allow users to approve transactions using fingerprint or facial recognition instead of the traditional 4 or 6 digit PIN. The feature was unveiled at the Global Fintech Fest 2025 held on October 7 in Mumbai.

Biometric For UPI Payments

The new NPCI system, which performs biometric verification directly on the user’s device, is designed to offer a faster, safer, and more seamless payment experience. It will serve as an alternative to PIN-based authentication, which has been in use since UPI’s launch in April 2016.

The launch was announced by M Nagaraju M, Secretary, Department of Financial Services, Ministry of Finance. He described the feature as a “secure and user-friendly evolution” of UPI authentication.

According to NPCI, biometric authentication can also be used for setting or resetting UPI PINs, and even for cash withdrawals at ATMs using UPI. Users who wish to use this feature will need to opt in voluntarily, giving them full control over their preferred authentication method.

“Each transaction is independently verified by the issuing bank using robust cryptographic checks, ensuring the highest level of safety while keeping the experience simple and seamless,” NPCI said in its official statement.

Simplifying Onboarding for New Users and Senior Citizens

The introduction of biometrics is expected to significantly simplify UPI onboarding, especially for first-time users and senior citizens.

Until now, setting up a UPI PIN required users to either enter debit card details or go through Aadhaar OTP verification. With the new Aadhaar-based Face Authentication feature, this process becomes faster and more inclusive, particularly benefiting those who don’t have easy access to debit cards.

UPI’s authentication framework consists of two factors, which includes device binding via SMS that acts as the primary factor and PIN or biometric verification as the second factor.

Addressing Security and Fraud Concerns

The move towards biometric authentication comes amid the Reserve Bank of India’s (RBI) increasing concerns about PIN-related fraud in UPI transactions.

RBI has been urging financial institutions to adopt alternative second-factor authentication methods such as biometric verification or behavioural risk analysis, instead of relying solely on PINs and OTPs.

NPCI has been working on alternative authentication methods for several years. In 2021, it hosted the NPCI PayAuth Challenge, a hackathon that invited startups to design new forms of secure payment authentication. Among the winners were Tech5, Juspay, MinkasuPay, and Infobip. These companies were later allowed to present proofs of concept (POCs) to the UPI Steering Committee, which includes representatives from major banks and UPI apps.

While both Tech5 and MinkasuPay showcased their solutions, banks preferred MinkasuPay’s model, as it required minimal technical adjustments to existing systems.

Meanwhile, the Unified Payments Interface (UPI) continues to dominate India’s digital payments landscape, accounting for nearly 85% of all online transactions. Each month, the platform processes over 20 billion transactions, amounting to ₹25 lakh crore in value.

FAQs

Q1. What is the new biometric authentication feature for UPI?

Answer. NPCI now allows users to authenticate UPI payments using fingerprint or Face ID instead of a PIN. This device-level biometric verification offers a faster, safer, and more seamless payment experience.

Q2. Can biometric authentication be used for other UPI functions?

Answer. Yes, users can use biometrics to set or reset their UPI PIN and even withdraw cash from ATMs via UPI. Opting in is voluntary, giving users full control over their preferred method.

Q3. How does Biometric UPI benefit senior citizens and new users?

Answer. Biometric onboarding simplifies UPI setup by replacing debit card or OTP-based verification with Aadhaar-based Face Authentication, making it more inclusive and accessible, especially for those without debit cards.

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https://www.mymobileindia.com/npci-launches-upi-one-world-to-simplify-digital-payments-for-nris-and-tourists/