Will UPI Drop the PIN? NPCI Explores Face ID and Biometric Authentication for Payments

The National Payments Corporation of India (NPCI) is reportedly considering the possibility of allowing Unified Payments Interface (UPI) transactions to be authorised through biometric authentication methods like Face ID and fingerprint scans, in effect doing away with the need to manually enter a PIN for payment approval.

PIN-Free Payments Under Consideration

At present, UPI users must enter a 4 to 6 digit PIN each time they wish to authorise a transaction. However, reports suggest that NPCI is considering an upheaval in this process, where biometric authentication that is already embedded into most smartphones could serve as a secure and convenient alternative.

While NPCI has not issued any official communication on the matter, the discussions reportedly centred around integrating such mechanisms to streamline transaction processes and improve security.

What are the benefits?

The logic behind this proposal lies in the uniqueness of biometric traits. Unlike PINs, which can be stolen or fraudulently obtained, facial features and fingerprints are inherently tied to the user and are considerably harder to duplicate.

Experts believe that this could lead to a substantial drop in UPI-related frauds. Rohit Mahajan, Founder and Managing Partner of plutos ONE pointed out that the potential change would benefit millions, particularly senior citizens and rural users. Mahajan notes that by removing the need to memorise a PIN, digital transactions would become far easier to use and thus accessible to people with limited digital literacy.

He also stressed that the rollout must be supported by strong safeguards around data privacy, explicit consent and readiness of backend systems.

Integrating Biometrics Across Devices and Apps

Reports indicate that the initiative would rely on smartphone-level biometric authorisation systems already in use for unlocking devices. This would pave the way for UPI apps such as PhonePe, Google Pay and Paytm to incorporate Face ID or fingerprint authentication as the final verification layer.

Aadhaar-linked biometric data may also be leveraged in the future, but calls for stringent policies and supporting infrastructure due to the sensitive nature of such data.

Experts caution that biometrics alone may not be sufficient. If a smartphone is stolen, it could potentially provide direct access to UPI-linked bank accounts; hence calling for a multi-factor authentication method to guard against misuse.

According to the Reserve Bank of India’s Payment System Indicators for June 2025, UPI transaction volumes surged to 18.39 billion, with the total value reaching ₹24.03 lakh crore.

With UPI playing an increasingly central role in India’s digital payments ecosystem, the proposal, if executed meticulously, could set a new standard for secure and user-friendly transaction authorisation.

However, whether PIN-less UPI becomes a reality, depends on NPCI’s internal evaluation of privacy frameworks, security design and technological feasibility.

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