UPI payment apps like PayTM, PhonePe, and GPay will undergo a significant change as the Reserve Bank of India (RBI) has issued a guideline for the UPI verification process.
Until now, while making payments, a UPI user had to insert their PIN to make the final transaction. But, following the new guideline of the RBI, the National Payments Corporation of India (NPCI), which oversees India's digital payments ecosystem, there is an introduction of "biometric authentication" for UPI apps. The biometrics will serve as an alternative to the PIN-based UPI authentication.
The biometric authentication is expected to roll down for all UPI apps, including Gpay, PhonePe, BharatPe, and PayTM, from October 8. However, this does not mean that the 4-digit pin will be removed. Biometrics features, such as face and fingerprint authentication, will only be an alternative in order to make the payments faster and safer for the UPI users.
The biometric authentication is backed by India's identification system, Aadhaar. The authentications in UPI are based on biometrics, which are already functioning as a part of the Aadhaar framework. The new feature is expected to be displayed at the Global Fintech Festival in Mumbai.
NPCI stated, "Each transaction is independently verified by the issuing bank using robust cryptographic checks, ensuring the highest level of safety while keeping the experience simple and seamless."
Under the new biometric feature in their online payment platform, users can change their UPI PINs from Aadhaar-based face authentication, instead of following the whole Aadhaar OTP verification process. This means the whole process will turn faster and seamless for the users.
With its link to the user's Aadhaar framework, the NPCI asserts that several UPI-related scams and PIN-related fraud will be easily combated. NPCI assures that the update will ensure safe, secure, and hassle-free UPI transactions.