Advertisement
India to Roll Out Biometric Authentication for UPI Payments
India will allow UPI users to approve payments using facial recognition or fingerprints from 8 October 2025, replacing or complementing PINs, in a move aimed at boosting security and ease of use.
Author: Meera
Published: October 9, 2025
Advertisement
In a significant step towards enhancing digital security and ease of use, India will begin allowing users to authenticate Unified Payments Interface (UPI) transactions using facial recognition and fingerprint scans, starting 8 October 2025, according to three sources familiar with the development.
This move marks a major shift from the current system, which requires users to enter a numeric PIN to complete UPI transactions. The new method will rely on biometric data linked to users’ Aadhaar numbers – India’s national identification system.
New RBI Guidelines Enable the Change
The rollout follows new guidelines issued recently by the Reserve Bank of India (RBI), which permit alternative forms of authentication for digital payments. These guidelines aim to improve both security and user convenience, especially as digital payments continue to rise rapidly across the country.
“Biometric authentication will use the Aadhaar-linked data already stored with the government,” one source said. “It will add an extra layer of security and also benefit users who may struggle with remembering or entering PINs.”
How the System Will Work
Under the new system:
- Users can choose to approve UPI payments using facial recognition, fingerprints, or the existing PIN method.
- The biometric data will be matched in real-time with information stored in the Aadhaar database.
- This form of authentication will be especially useful for people using feature phones, or for those with limited literacy or physical disabilities.
The process is expected to be seamless and fast, similar to how Aadhaar-based biometric verification is already used for services like SIM card activation and bank account KYC (Know Your Customer).
NPCI to Showcase Feature at Global Fintech Festival
The National Payments Corporation of India (NPCI) – the body that operates UPI – is set to showcase this biometric authentication feature at the Global Fintech Festival in Mumbai. The festival is currently underway and features participation from global financial leaders, fintech firms, and regulators.
This launch is being seen as part of India's broader effort to improve financial inclusion and digital accessibility, particularly in rural areas where smartphone use is growing but digital literacy remains a challenge.
Advertisement
Security and Privacy Concerns
While the use of biometrics offers a more convenient user experience, experts have raised questions about data security and privacy. Biometric data is sensitive and permanent, unlike passwords which can be changed if compromised.
Government officials and NPCI are expected to address these concerns by ensuring that:
- Biometric data is securely encrypted,
- Authentication happens in compliance with data protection laws,
- And no biometric data is stored locally on devices.
Despite these reassurances, privacy advocates are likely to monitor the rollout closely.
No Official Comment Yet
As of now, the NPCI has not issued an official public statement. A spokesperson did not immediately respond to a request for comment from Reuters.
What This Means for Users
This change is likely to be introduced in phases, starting with selected banks and UPI apps. Over time, it is expected that more users will be given the option to enable biometric authentication through their UPI-enabled apps such as PhonePe, Google Pay, Paytm, and BHIM.
If successful, this could make India one of the first major countries to allow large-scale biometric approval of mobile payments without relying solely on device-level biometrics (like Apple Face ID or Android fingerprint scanners).
No comments yet.