Highlight
- NCPI is discussing with a few startups to introduce biometric authentication for UPI
- This process is ongoing and may take up to three months to finalize.
The National Payments Corporation of India (NPCI) a body that looks into the payment system in India is discussing with a few startups to introduce biometric authentication for Unified Payments Interface (UPI) transactions.
Why biometric authentication for UPI?
Currently, UPI transactions rely on a two-factor authentication system: a four or six-digit PIN and an OTP similar to those used for card payments. The initial device binding for UPI enrollment is typically verified via SMS. However, the surge in UPI scams linked to PIN-related fraud has prompted the Reserve Bank of India (RBI) to explore stronger security measures.
To enhance transaction security, NPCI is in discussions with startups to introduce biometric authentication for UPI. This would allow users to authenticate payments using fingerprint recognition on Android devices or Face ID on iPhones, eliminating the need for a PIN.
Also Read: NCPI to launch UPI Payment in Qatar: Here’s what you need to know
Conclusion
The National Payments Corporation of India (NPCI) is currently evaluating potential partners to implement biometric authentication for UPI transactions. This process is ongoing and may take up to three months to finalize. In the initial phase, both in-app and biometric authentication methods are likely to be introduced.
It’s worth noting that NPCI previously hosted the NPCI PayAuth Challenge in 2021 to encourage startups to develop innovative authentication solutions. Tech5, Juspay, MinkasuPay, and Infobip emerged as winners of the competition.
