UPI’s New Masterstroke: The Hassle of PIN is Over
In Brief
A Milestone in the Digital Journey
How Will the New Technology Work?
Transactions to be Done with Face and Fingerprint
A major transformation is about to occur in India's digital payment ecosystem. The method of making payments using the Unified Payments Interface (UPI), which millions of Indians use daily, is set to change permanently. You will no longer need to remember and enter a 4 or 6-digit PIN when making payments. According to a report, users will be able to approve UPI payments using facial recognition and fingerprints starting from October 8. This move will not only make the payment process faster and simpler but could also make it more secure than before.
A Milestone in the Digital Journey
Experts say that this will be a milestone in India's digital (UPI) journey, where your identity becomes your password. The National Payments Corporation of India (NPCI), which operates the UPI network, plans to showcase this cutting-edge feature at the Global Fintech Festival in Mumbai. NPCI has not yet commented on this (UPI Biometric Payments Update), but sources say that all preparations for the implementation of this new technology are complete.
How will the new technology work?
This new biometric authentication system will be entirely based on the Indian government's unique identification system, Aadhaar. A source explained that when a user uses their face or fingerprint to make a payment, they will be verified against the biometric data stored in Aadhaar. This means that only the person whose bank account and UPI ID are linked to their Aadhaar card will be able to approve the payment.
Biometric Authentication
This process will be extremely simple. While making a payment, the user will have to choose biometric authentication instead of entering a PIN. This will activate the phone's camera or fingerprint scanner. After a successful scan, the data will be securely sent to the Aadhaar server for verification, and after verification, the payment will be instantly successful. This entire process will be completed in a few seconds, making the payment experience seamless and hassle-free. This initiative will be particularly beneficial for those who have difficulty remembering their PIN or who are more concerned about security.
Why was this change necessary?
The decision to incorporate biometric authentication into UPI was not made suddenly. It is a direct result of the recently issued guidelines by the Reserve Bank of India (RBI). To promote security and innovation in payment systems, the RBI has allowed alternative authentication methods. The central bank's goal is to make digital payments more user-friendly and secure, encouraging more people to adopt them.
In the current PIN-based system, although fairly secure, there are some vulnerabilities, such as someone being able to see your PIN or steal it through phishing. Biometric authentication almost eliminates these risks, as each person's fingerprint and face are unique.