UPI to Get Simpler and Smarter: Biometric Authentication Replaces PIN System
In a major move to enhance digital payment security and convenience, the National Payments Corporation of India (NPCI) has officially eliminated the need for entering a UPI PIN during transactions. Instead, users can now authenticate payments using fingerprint or face recognition directly through their mobile devices. The new system, announced at the Global Fintech Fest in Mumbai on October 7, 2025, is designed to make UPI transactions faster, safer, and more accessible — especially for senior citizens and first-time users.
Until now, every UPI transaction required a four or six-digit PIN for verification. With this upgrade, users can authorize payments using biometric data stored securely within their mobile devices. This means that your fingerprint or face scan will act as your new “password,” completely removing the need to type your PIN every time you make a transaction.
Importantly, NPCI confirmed that the entire biometric process will happen locally on the mobile device, ensuring no biometric information is sent to any external server. This privacy-focused approach aims to strengthen user trust and minimize the risk of data breaches.
The newly launched biometric system can be used not only for regular UPI payments but also for setting up or resetting UPI PINs and even withdrawing cash from ATMs via UPI.
The feature is completely optional, allowing users to continue using the traditional PIN system if they prefer. NPCI clarified that each transaction will still go through a bank-level cryptographic security check, maintaining the highest level of protection against unauthorized access.
According to the Department of Financial Services Secretary M. Nagaraju M., this feature is “a significant step towards simplifying digital payments while maintaining top-tier security standards.”
The introduction of biometric authentication is expected to greatly benefit elderly users and digital beginners, who often struggle with remembering or entering PINs. Previously, users had to use their debit card details or Aadhaar-linked OTP to generate or reset UPI PINs. With the new system, authentication through Aadhaar-based face or fingerprint recognition will make this process quicker and more user-friendly.
As of now, UPI’s first security layer remains the mobile device binding via SMS verification, while the second layer — previously the UPI PIN — can now be replaced by biometric verification. This dual-layer system ensures both simplicity and security for all users.
This development didn’t happen overnight. The initiative traces back to 2021, when NPCI launched the PayAuth Challenge, inviting fintech startups to create alternative authentication methods for digital payments. Companies like Tech5, Juspay, MinkasuPay, and Infobip emerged as winners by presenting innovative biometric and behavioral authentication solutions.
After several rounds of testing and evaluation by the UPI Steering Committee — comprising leading banks and fintech players — MinkasuPay’s model was chosen for implementation, as it required minimal changes to the existing UPI infrastructure.
The Reserve Bank of India (RBI) has been closely monitoring the rising cases of UPI-related fraud and PIN-based scams. This biometric update aligns with the RBI’s long-standing directive to explore alternative authentication systems such as behavioral and biometric verification to reduce the dependency on OTPs and PINs.
By integrating face and fingerprint authentication, NPCI aims to significantly reduce fraud cases that often occur due to PIN theft, phishing, or social engineering scams. Biometric verification ensures that only the legitimate account holder can authorize a payment.
UPI remains India’s largest digital payment platform, handling nearly 85% of the country’s online transactions. Each month, it processes over 20 billion transactions, amounting to more than ₹25 lakh crore in value. With the introduction of biometric authentication, UPI is set to become even more secure and inclusive — potentially accelerating India’s journey toward a fully digital economy.
The elimination of UPI PINs and the introduction of biometric verification mark a new era in India’s digital payment ecosystem. This feature not only enhances security but also simplifies transactions for millions of users. With privacy protection, convenience, and advanced security at its core, the NPCI’s latest innovation could redefine how India makes payments in the years to come.
