UPI payments have become an essential tool for digital transactions in India, serving millions of users daily. The National Payments Corporation of India (NPCI), which oversees UPI, reports that transactions worth billions are processed across various UPI platforms nationwide. Soon, these payments may become even more secure, as NPCI explores integrating biometric authentication, such as Face ID or fingerprint sensors, into the UPI system.
Biometric Authentication in Development
Recent reports indicate that NPCI is in discussions with companies to implement biometric verification methods for UPI transactions. This move follows a recent proposal by the Reserve Bank of India (RBI) to explore alternative methods for additional factor authentication (AFA) in digital transactions. The RBI has suggested that methods beyond traditional PINs and passwords, including biometric options, be considered for enhanced security.
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Initial Coexistence of PIN and Biometrics
NPCI’s current talks with startups focus on the financial and legal aspects of potential partnerships. Initially, both PIN-based and biometric authentication methods are expected to be available to users, providing multiple options for securing transactions.
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This development could allow users to verify UPI payments using biometric features on their smartphones, such as fingerprint sensors on Android devices or Face ID on iPhones. The shift towards biometrics is driven by concerns over the increasing number of scams involving UPI transactions, where users are often deceived into sending money to fraudsters by using their secure PINs. Despite UPI’s generally secure framework, these scams have highlighted the need for stronger authentication methods.
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Future Prospects
The introduction of biometric verification for UPI payments is seen as a significant step towards reducing fraud. However, the timeline for when this feature will be available remains unclear, and it is uncertain which UPI apps will support it. With popular platforms like Google Pay, PhonePe, Amazon Pay, and Paytm leading the market, it is anticipated that users will have the option to choose between PINs or biometrics as the technology evolves.
