Facial recognition and fingerprint technology could soon enhance security and convenience in digital transactions
The National Payments Corporation of India (NPCI) is reportedly in talks with start-ups to introduce biometric authentication for UPI payments, signalling a potential shift towards enhanced security in digital transactions. This emerging technology, which allows customers to transact using facial recognition and fingerprints, could revolutionise the way payments are made.
Currently, UPI transactions require a PIN or password for authentication. Although these methods are effective, they are not immune to cyber threats. As digital fraud continues to rise, the need for more robust security measures has become apparent, and biometric authentication is being touted as a potential solution. “This method is already widely used in smartphones for unlocking devices and authorising actions such as payments,” says Atish Shelar, COO of TechFini, a UPI-based payment infrastructure provider.
Integrating biometric technology into UPI transactions could drastically reduce the risk of unauthorised access, as replicating biometric data is far more challenging than guessing a PIN or password. To enable this system, customers would first need to link their Aadhaar number with their bank account. “Users will not need to remember a PIN; instead, they must ensure that their biometric data, such as fingerprints or facial recognition, is correctly registered and updated in the system,” explains Rahul Jain, CFO of NTT Data Payments India.
Once registered, customers’ biometric data would be encrypted and securely stored in a centralised database. During a transaction, the customer would present their biometric characteristics, which would be scanned and matched against the stored data for verification. This high level of accuracy and security is expected to significantly reduce fraud.
“Biometric authentication enhances security by making it difficult to copy or steal identities, as biometric traits are unique. It is also convenient, as users don’t need to remember complex passwords, and transactions are faster,” Jain adds. The government is also reportedly keen on promoting such payment methods to curb financial fraud and enhance user safety and convenience.
