Users of UPI will now have the option to authorise payments using their fingerprints or facial recognition on mobile devices as an alternative to entering the personal identification number (PIN).

The launch of the biometric-based Unified Payment Interface (UPI) transaction feature was announced by the National Payments Corporation of India (NPCI) and the Reserve Bank of India (RBI).

Such transactions will initially be capped at Rs 5,000 and be up for review later. 

Since the feature is optional, the user has to turn it on in their smartphones to enable fingerprint or face unlock security for UPI transactions.

The UPI-compliant mobile wallet service providers, such as PhonePe, Google Pay, Paytm, BharatPe and others, are expected to roll out the new update with a biometric-based authentication feature for UPI transactions soon.

NPCI has also launched an Aadhaar-based facial authentication feature to set or reset the UPI PIN on a smartphone. With this, onboarding becomes simpler, faster and more secure. Currently, the user needs to enter the debit card details or go through Aadhaar OTP verification to create a UPI PIN. 

Since the new security feature is powered by UIDAI’s FaceRD App for Aadhaar-based facial verification, there is no need to manage multiple OTPs. There will also be no requirement for debit card details.

For each transaction, independent verification will be carried out by the issuing bank using cryptographic checks.

The biometric authentication will significantly reduce frauds as it is nearly impossible to duplicate. It is expected to bring in millions of new UPI users due to its simplicity and increased security feature.

However, privacy and data protection will be crucial for this mode to be highly popular.  

NPCI also announced that UPI will soon be available on smart glasses. Users will be able to do small-value transactions via UPI Lite IDs. 

Users can thus perform hands-free and secure transactions by simply scanning a QR, authenticate and complete payments through voice on Smart Glasses, without needing a phone or entering a PIN.

NPCI also launched a new mode for cash withdrawal through Micro ATMs using UPI at UPI Cash Points (Business Correspondent touchpoints).