Biometric UPI Payments: A New Era in Digital Transactions

In a groundbreaking development for India’s digital payments landscape, the National Payments Corporation of India (NPCI) has unveiled biometric and wearable glass authentication for UPI transactions. This initiative was launched at the Global Fintech Fest 2025 in Mumbai, marking a significant step toward enhancing the security and inclusivity of digital transactions.

The new feature allows users to authenticate their UPI payments using facial recognition or biometric data stored in their Aadhaar. This shift is poised to replace the traditional four- or six-digit UPI PIN, making transactions simpler and more secure. By ensuring that sensitive data remains on the user's device, the initiative enhances both privacy and security.

Another exciting innovation introduced is the UPI Lite feature for wearable smart glasses. This hands-free solution allows users to complete small-value transactions through simple voice commands, eliminating the need for phones, PINs, or physical touch. A quick QR code scan is all that’s required to authenticate and finalize payments.

NPCI also announced the introduction of multi-signatory accounts on UPI, facilitating payments that require approval from multiple account holders. This feature aims to simplify the management of shared accounts, such as family or business accounts, ensuring greater convenience and transparency.

Building on the existing Aadhaar infrastructure, which includes residents’ biometric data, the new systems aim to integrate this information into the UPI framework for payment verification. Users can now initiate transactions and authenticate them via fingerprint scanning or facial recognition, making the process both secure and user-friendly.

The Reserve Bank of India has recently approved alternative authentication methods, paving the way for this innovative system. During the launch, M. Nagaraju M, Secretary of the Department of Financial Services, described the feature as a crucial milestone in India’s digital journey, providing a user-friendly and secure alternative for transactions.

According to NPCI, users will soon be able to approve UPI payments using facial recognition without needing a PIN. This technology leverages on-device biometric capabilities, such as fingerprint sensors and facial recognition tools, which are now widely available on smartphones.

Additional functionalities will include the ability to set or reset UPI PINs and withdraw cash from ATMs using biometric authentication. Importantly, this feature is optional, allowing users to choose between the traditional PIN and biometric verification.

NPCI assures that each transaction will be independently verified by the issuing bank through robust cryptographic checks, ensuring the highest safety levels while providing a smooth payment experience.

This upgrade is particularly beneficial for senior citizens, rural users, and first-time digital payment users, who often find traditional PIN systems cumbersome. Aadhaar-linked face authentication will simplify onboarding, particularly for individuals without debit cards.

Previously, creating a UPI PIN required entering debit card details or Aadhaar OTP verification. With the introduction of Aadhaar-based face authentication, users can onboard in seconds, making the system more inclusive.

The launch of biometric authentication is a significant advancement for UPI, which already supports billions of transactions monthly and underpins India’s cashless economy. With this initiative, NPCI aims to make digital payments easier, more secure, and accessible to every Indian.