UPI Adds Biometric Authentication, Ends Reliance on PINs

The National Payments Corporation of India (NPCI) has launched a landmark upgrade for UPI, introducing fingerprint and face authentication as an alternative to the traditional PIN system. Announced at the Global Fintech Fest in Mumbai, this on-device biometric feature aims to make digital transactions more secure, simple, and inclusive for all users, with a focus on onboarding senior citizens and first-time digital payment adopters.

With the new feature, UPI users can authenticate payments, set/reset UPI PINs, and withdraw cash at ATMs using either facial recognition or fingerprint scans. All biometric verification is conducted directly on users’ devices, ensuring sensitive data never leaves the device. The change comes in response to the Reserve Bank of India’s push for advanced authentication methods, moving beyond PINs and OTPs to counter rising digital payment fraud. Now, customers can opt-in for the biometric alternative, granting greater control over their authentication preferences.

The move is particularly beneficial for those who find the PIN process cumbersome or do not have easy access to debit cards, enabling faster onboarding via Aadhaar-based face authentication. Each transaction will be independently verified by issuing banks, using robust cryptographic checks to maintain high security standards. An Indian startup, FaceOff Technology, has developed an innovative solution called FacePay, which leverages a Biological Behaviour Algorithm powered by Neuro-Chain technology to enhance secure and seamless digital transactions.

As UPI drives 85% of India’s online transactions, powering over 20 billion payments monthly, the adoption of biometric authentication is set to further boost safety, convenience, and trust in India’s rapidly expanding cashless economy