The National Payments Corporation of India (NPCI) and the Department of Financial Services have unveiled a new suite of UPI features. These upgrades are designed to enhance digital payments by making them faster, safer, and more accessible. From in-device biometrics to Aadhaar Face IDs, UPI is expected to revolutionize traditional fintech with its next phase of growth.
NPCI has introduced on-device biometric authentication, enabling consumers to authenticate UPI payments. One can use their phone’s native security features, such as fingerprints or facial recognition, to access the feature.
Unlike the PIN entry method we used earlier, this method does not store biometric information on NPCI servers. Instead, data is verified securely on the user’s device, while the issuing bank still checks every transaction via cryptographic protocols. This requires users to opt in to enable the feature, keeping complete control over it.
The step aligns with the sector’s drive for no password authentication. This minimizes friction while ensuring that fraud remains under control. For India’s 300 million-plus UPI users, this might translate to quicker, one-touch transactions without compromising on security.
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Setting or resetting a UPI PIN has involved inputting debit card information or relying on an OTP associated with Aadhaar. NPCI is going to implement an Aadhaar-based face verification. The process allows users to authenticate their identity through a facial verification system.
This aspect is of immense benefit to first-time users, the elderly, and residents in rural areas. With a simple facial scan, users can create or change their UPI PIN, eliminating the need for a card or OTP, and the waiting period is removed completely. NPCI also indicated that this technology may eventually be used for authorizing actual UPI payments.
Another one of RBI Deputy Governor T Rabi Sankar’s announcements is UPI Multi-Signatory Accounts. The functionality enables multiple account holders, eg, business partners or family members, to jointly sign off on a payment. It’s a much-awaited feature that takes UPI nearer to the flexibility that traditional banking enjoys, particularly for cooperative or corporate use cases.
Next, the future leap: UPI Lite for wearables. Customers will soon be able to make small, hands-free payments through smartwatches or smart glasses. Payments can be triggered by scanning a QR code and authenticated with voice commands, eliminating the need to take out a phone or enter a PIN.
UPI’s new upgrades are an indication of the fintech revolution we are witnessing. India’s most successful payment system is moving from a mobile-first tool to an ecosystem of convenience and trust. Biometrics, face ID, and wearables are the pioneers of this change.
Through these modifications, the future of payments will depend on a user’s face, voice, and touch, rather than their wallet or their phone.