UPI payments may soon use fingerprint and face recognition:NPCI may launch new features on Wednesday, besides retaining PIN function

The National Payments Corporation of India (NPCI), which operates the Unified Payments Interface (UPI), is reportedly prepared to introduce biometric features like face recognition and fingerprint scanning for transactions. This new option, expected to be approved soon (possibly as early as tomorrow, October 8th, at the Global Fintech Festival in Mumbai), would make the current PIN requirement optional. Here is a breakdown of the new features and the existing UPI system in QA format: Understanding Biometric UPI Payments What is Biometric Payment? Biometric payment uses unique physical features—like a fingerprint or face ID—for identification. It’s considered more secure and convenient than using a PIN or password, similar to how you use biometrics to unlock your smartphone. It’s difficult to copy these features. How will the New System Work? When making a UPI payment, instead of entering a PIN, users will have the option to use their phone’s face recognition or fingerprint scan to authorize the transaction. How Secure will the New Features Be? The system plans to use biometric data directly from the Government of India’s Aadhaar system. To authorize a payment, your data will be cross-checked with the biometric information registered in your Aadhaar card, making this method highly secure. Why is Biometric Payment Being Introduced? Biometric authentication carries a lower risk of fraud compared to a PIN. Experts believe this will significantly boost digital payment adoption, particularly in rural areas, where users may own smartphones but find it difficult to remember or type in a PIN. Will All UPI Apps Have This Feature? The feature is designed to be supported by almost all UPI apps. Initially, you may see it rolled out on major apps like Google Pay, PhonePe, and Paytm. Important Facts About UPI The UPI system is a revolutionary payment method that allows you to manage several bank accounts on a single mobile application. Real-Time Transfer: UPI performs real-time fund transfers, and you can link multiple bank accounts to one app. Simple Identification: To send money, you only need the recipient’s mobile number, account number, or Virtual Payment Address (VPA)/UPI ID. 24×7 Availability: Developed on the model of IMPS (Immediate Payment Service), UPI allows you to conduct banking 24×7. Easy E-commerce: For online shopping with UPI, there’s no need to enter sensitive details like OTP, CVV code, card number, or expiry date. Service Versatility: UPI supports utility bill payments, over-the-counter payments, barcode-based payments, and a bill sharing facility. Launch and Rollout: The service was launched by the National Payments Corporation of India (NPCI) as a pilot with 21 banks on April 11, 2016. Banks began uploading UPI-enabled apps to the Google Play Store on August 25, 2016.