The National Payments Corporation of India (NPCI) is exploring partnerships with startups to introduce biometric authentication for Unified Payments Interface (UPI) transactions. This initiative aims to enhance security and user experience by allowing users to verify payments using fingerprints on Android devices and face ID on iPhones, replacing the current UPI PIN system.
Key Points
- Partnerships with Startups: NPCI is in discussions with several startups to integrate biometric authentication into UPI transactions. This collaboration focuses on financial and legal aspects to ensure a smooth implementation.
- Biometric Authentication: The proposed system will enable users to authenticate payments using fingerprints on Android devices and face ID on iPhones, offering an alternative to the existing four or six-digit UPI PIN.
- RBI’s Proposal: This move aligns with the Reserve Bank of India’s (RBI) recent proposal to explore alternative methods for additional factor authentication (AFA) in digital transactions, including biometric options.
- Enhanced Security and User Experience: By leveraging the biometric capabilities of modern smartphones, NPCI aims to provide a more secure and user-friendly UPI transaction process. Initially, both PIN and biometric authentication methods are expected to coexist, giving users multiple verification options.
- Current UPI Authentication: Currently, UPI employs a two-factor authentication system involving device binding through SMS and a UPI PIN. The introduction of biometric authentication could further simplify and secure the transaction process.
- Implementation Timeline: While the exact timeline for implementation is unclear, the proposed change is expected to improve payment convenience and security.
Statement from NPCI
NPCI is committed to enhancing the security and user experience of UPI transactions. The proposed biometric authentication system represents a significant step towards achieving these goals, in line with the RBI’s recommendations.
