UPI unleashes next-gen features: Biometric payments, Aadhaar PINs and more for faster transactions

In the last few years, UPI (unified payments interface) has emerged as India's largest and among the leading real-time payment systems in the world. In September alone, UPI processed 19.63 billion transactions, close to Rs 25 lakh crore in value terms.

The National Payments Corporation of India (NPCI) on Tuesday announced several enhancements at the Global Fintech Festival that should give UPI a further boost and make it easier from a consumer perspective.

Biometric authentication for seamless payments

You typically walk into a store, buy a product and then to pay, you scan a QR code and type in your UPI pin and it's done. What if you forgot your PIN or you are juggling multiple things in your hand? Well, now you will be able to authorise UPI payments with the help of your on-device biometric authentication, like your fingerprint or face unlock.

According to NPCI, the facility will be made available to customers who choose to opt in, giving them control over their preferred mode of authentication.

"It aims to make payments faster and more secure by reducing the need for repeated PIN entries," it said.

It stressed that each transaction will be independently verified by the issuing bank using robust cryptographic checks, ensuring the highest level of safety while keeping the experience simple and seamless.

NPCI has also launched a multi-signatory accounts feature on UPI. This will enable joint accounts on UPI that require authorisation from more than one signatory to complete the UPI payment.

This feature should be ideally helpful for corporates, small and medium enterprises, trusts and other entities where authorisation for payments is required from multiple signatories.

This multi-signatory feature is fully interoperable, allowing initiators to use any UPI or bank apps, while signatories can approve via any UPI or bank app.

Aadhaar-based face authentication for UPI PINs

Separately, NPCI is also making it easier for users to set or reset their UPI pin through the app itself with the help of Aadhar-based face authentication.

"Until now, creating a UPI pin required entering debit card details or going through Aadhaar OTP verification. With Aadhaar-based Face Authentication for UPI pin, onboarding becomes faster, simpler, and more inclusive, especially for first-time users, senior citizens, and those without easy access to cards," NPCI officials explained.

The solution leverages UIDAI’s (Unique Identification Authority of India) FaceRD application for Aadhaar-based facial verification, which eliminates the need to manage multiple OTPs or card details, in turn enhancing convenience and security.

Furthermore, one will now also be able to use UPI to make cash withdrawals through micro ATMs at cash points, a move aimed at enhancing financial inclusion and improving access to cash in remote and underserved areas.

"It supplements Aadhaar biometric-based AePS (Aadhar-enabled payment system) and card-based transactions by offering customers a convenient alternative of simply scanning the dynamic QR code displayed by the business correspondent and authorising the transaction through their UPI App," officials noted.