The National Payments Corporation of India (NPCI) is reportedly considering a major shift in authentication methods for Unified Payments Interface (UPI) transactions. In discussions with several startups, NPCI aims to introduce biometric authentication, allowing users to authenticate payments using fingerprints on Android devices and face ID on iPhones, potentially replacing the current four or six-digit UPI PIN.
This initiative aligns with the Reserve Bank of India’s (RBI) recent proposal for alternative methods of additional factor authentication (AFA) in digital transactions, including biometrics such as fingerprints. According to a report by MoneyControl, NPCI is focusing on the financial and legal aspects of these potential partnerships. Initially, both PIN and biometric authentication methods are expected to coexist, providing users with multiple options for transaction verification.
The move towards biometric authentication aims to enhance the security and user experience of UPI transactions by leveraging the built-in biometric capabilities of modern smartphones. Currently, UPI uses a two-factor authentication system: device binding through SMS and the UPI PIN. If implemented, this change could streamline the payment process and improve security.
