Flipkart, Axis Bank, PayU roll out biometric authentication for card payments

Flipkart has partnered with Axis Bank and PayU to introduce biometric authentication for card payments, marking a significant shift away from OTP-based verification in India’s fast-evolving digital payments ecosystem. The feature allows users to approve transactions using fingerprint or facial recognition, offering a faster and more seamless checkout experience.

The service is currently being rolled out for Axis Bank cardholders and is enabled through issuer-level biometric verification on supported Android and iOS devices. By eliminating the need for one-time passwords (OTPs), the solution aims to reduce transaction failures, delays, and friction commonly associated with SMS-based authentication.

The collaboration brings together merchant infrastructure, issuer capabilities, and payment processing. While Flipkart integrates the feature at the platform level, PayU manages the backend infrastructure and authentication flows, and Axis Bank leverages Wibmo for biometric verification. This device-bound authentication framework enhances security through advanced checks and reduces vulnerabilities such as SIM-swap fraud.

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The launch comes at a time when digital payment fraud in India is rising sharply. Fraud values surged more than fivefold to exceed ₹1,400 crore in FY2024, according to RBI-linked data. In response, the Reserve Bank of India has been pushing for stronger authentication mechanisms through its 2025 guidelines, encouraging the adoption of biometric and risk-based verification over traditional OTP systems.

Industry executives say the move is aligned with evolving consumer expectations around speed and convenience. “The integration of biometric authentication reflects our commitment to building safety into consumer payments while delivering a seamless experience,” said Gaurav Arora, Vice President, Payments and SuperCoins at Flipkart.

Axis Bank also emphasized the dual benefits of security and ease of use. “Customers today expect digital payments to be not only safe but effortless, and biometric authentication delivers exactly that by enabling a secure, one-touch approval experience,” said Arnika Dixit, President & Head – Cards, Payments and Wealth Management at Axis Bank.

From a payments infrastructure perspective, the shift represents a structural evolution. By tying authentication to device-level biometrics rather than external channels like SMS, the system improves transaction success rates while reducing dependency on vulnerable communication layers.

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Hemang Dattani, Chief Business Officer at PayU Payments, noted that simplifying payments without compromising security remains critical as digital commerce scales. The partnership, he said, aims to address long-standing friction points associated with OTP-based verification while strengthening fraud controls.

UPI ecosystem mirrors the shift

Biometric authentication is also gaining traction in the UPI ecosystem. ICICI Bank, PhonePe, and CRED have introduced similar capabilities, allowing users to approve payments using fingerprint or facial recognition for transactions up to ₹5,000. For higher-value payments, PIN-based authentication continues to apply.

The feature is designed to streamline everyday transactions such as QR payments and peer transfers, while also addressing common issues like forgotten PINs. Importantly, fallback mechanisms remain in place, ensuring continuity if biometric verification fails.

As India’s digital payments ecosystem continues to scale, biometric authentication is emerging as a key enabler of faster, more secure, and frictionless transactions—potentially redefining how users interact with both card and UPI payment systems.

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