UPI is going biometric: Use face or fingerprints to make transactions

Central bank plans to introduce Aadhaar-based face and fingerprint authentication for popular digital platform

Don't want to miss the best from Business Standard?

People will soon be able to make UPI payments with fingerprints or face recognition, like they do to unlock their phones, “removing friction” caused by repeated PIN use.

 

The new feature will draw on Aadhaar biometric data to enable a seamless and secure transaction experience, said the National Payments Corporation of India (NPCI), which manages UPI (Unified Payments Interface).

 

It was announced at the Global Fintech Fest 2025 in Mumbai, where the Reserve Bank of India (RBI) and the Department of Financial Services (DFS) announced other new digital payment features. Among them was the much-anticipated on-device biometric authentication for UPI, allowing users to validate payments using their phone’s built-in fingerprint or face-unlock feature.

 

According to NPCI, customers who opt for this feature will be able to choose their preferred mode of authentication. Each transaction will still undergo strong cryptographic verification by the issuing bank, ensuring robust security standards.

 

“This is designed to make digital payments faster and more secure, while removing friction caused by repeated PIN entry,” said NPCI.

Aadhaar-based face verification for PIN setup

 

Aadhaar-based facial verification will also be introduced for UPI PIN setup and reset. This will allow users, especially senior citizens and first-time digital users, to onboard without entering debit card details or waiting for OTPs.

 

The process will leverage the Unique Identification Authority of India’s FaceRD app for real-time verification, enhancing inclusivity for those with limited access to traditional banking tools.  ALSO READ | Explained: How digital payments are fuelling India's economic growth

Part of RBI’s broader authentication revamp

 

This innovation aligns with the RBI’s broader directive issued last month, which seeks to balance security with user convenience. The regulator reaffirmed that every digital transaction must still adhere to two-factor authentication, using a combination of:

 

• Something you know: a PIN or password
• Something you have: a token or device
• Something you are: biometric data like a fingerprint or facial scan

 

The new framework allows device-based biometrics to serve as one of these factors, paving the way for faster, safer, and more intuitive digital payments.

What it means for users

 

For the average consumer, the change promises a smoother UPI experience, especially for small-value, high-frequency payments. Users may soon be able to approve payments instantly using their phone’s fingerprint sensor or face unlock, eliminating the need to remember or enter PINs each time.