In a major step towards making online payments faster and more secure, Flipkart, Axis Bank, and PayU have introduced biometric authentication for card payments. This new feature allows users to approve transactions using their fingerprint or Face ID, eliminating the need for traditional OTP (One-Time Password) verification.
What’s New in This Payment Feature?
The biometric payment option is currently available for Axis Bank cardholders using supported Android and iOS devices. Instead of waiting for an OTP via SMS, users can now simply authenticate transactions through their device’s built-in biometric system.
This innovation is designed to make the checkout process:
- Faster
- More secure
- User-friendly
On the backend, PayU manages the merchant-side infrastructure, while Axis Bank leverages Wibmo for authentication at the issuer level.
Why This Move Matters
India has witnessed a sharp rise in digital payment fraud in recent years. According to data linked to the Reserve Bank of India, fraud amounts crossed ₹1,400 crore in FY 2024, increasing more than fivefold.
To address these concerns, the RBI released its “Authentication Mechanisms for Digital Payment Transactions Directions, 2025”, encouraging financial institutions to adopt biometric and risk-based authentication methods instead of relying solely on OTPs.
How Biometric Authentication Improves Security
Unlike OTP-based systems, biometric authentication significantly reduces risks such as:
- SIM swap fraud
- OTP interception
- Phishing attacks
The new system uses device binding and advanced security checks, ensuring that transactions can only be approved from the registered device using the user’s unique biometric data.
Another advantage is familiarity—since most smartphone users already use fingerprint or Face ID unlocking, adoption is expected to be seamless.
What Industry Leaders Say
- Flipkart emphasized that the feature is designed to meet regulatory requirements while offering a smoother checkout experience.
- PayU highlighted that this innovation will make online transactions faster and more secure.
- Axis Bank stated that it plans to expand such digital payment innovations as e-commerce continues to grow in India.
A Step Towards the Future of Payments
This collaboration marks one of the first large-scale implementations of biometric authentication in India’s e-commerce space. It aligns closely with the RBI’s vision of modernizing digital payment systems.
As digital commerce continues to expand, such innovations could soon become the norm—offering users a secure, seamless, and OTP-free payment experience.