Flipkart, Axis Bank and PayU Launch Biometric Card Payments
In partnership with Axis Bank and PayU, Flipkart has launched biometric authentication for card transactions.
This functionality enables users to authorize transactions via fingerprint or Face ID on supported Android and iOS devices, thereby eliminating the necessity for one-time passwords (OTPs). It has been initially launched for Axis Bank cardholders, leveraging issuer-level biometric authentication.
Also Read: Snabbit’s $56 Million Series D Fuels India Leadership Bid
The organizations announced that the feature is intended to streamline digital payments by substituting SMS-based one-time passwords (OTPs) with a more expedited authentication method.
It also includes device binding and improved security measures designed to mitigate risks such as SIM-swapping and OTP-related fraud.
In this partnership, PayU is responsible for overseeing the infrastructure on the merchant's side, which encompasses device security and authentication processes.
Concurrently, Axis Bank leverages Wibmo, a company under the PayU umbrella, to handle biometric verification on the issuer's side. The introduction of this initiative occurs in the context of escalating anxiety regarding digital payment fraud.
Speaking on the launch, Gaurav Arora, Vice President, Payments and SuperCoins at Flipkart says, "At Flipkart, our approach to innovation is anchored around robust compliance and consumer trust. The integration of the biometric authentication feature reflects our commitment to building safety into consumer payments at a time when digital fraud risks are becoming increasingly sophisticated".
"By leveraging secure biometric credentials, we are delivering a payment experience that is intuitive and seamless, while meeting the highest standards of consumer protection".
"As digital commerce continues to scale, our focus remains on enabling faster transactions while reinforcing the regulatory rigour and ecosystem-wide trust that secure payments demand.”
Arnika Dixit, President & Head – Cards, Payments and Wealth Management, Axis Bank says, “At Axis Bank, we are constantly working to reinforce trust and security across every digital touchpoint. 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. We are delighted to introduce this enhanced capability for our cardholders through our collaboration with Flipkart and PayU".
Also Read: India-Africa Relationship Enters New and Decisive Phase
"This rollout reflects the strength of our long-standing partnership and our shared commitment to elevating industry standards in both security and customer experience. As digital commerce continues to evolve, we remain focused on bringing innovations that make payments simpler, stronger and future-ready for our customers.”
Commenting on the collaboration, Hemang Dattani, Chief Business Officer, PayU Payments, said, “As digital commerce continues to scale in India, simplifying payments without compromising on security is critical. At PayU, we are proud to partner with Flipkart to enable a biometric authentication experience for card payments, helping customers move past long-standing friction associated with OTP-based verification".
"By combining biometric authentication with enhanced security controls, this partnership marks a meaningful step towards building a faster, more secure and frictionless digital payments experience for Indian consumers.”
Also Read: PM to Launch Rs.4,000 Crore Projects at Sikkim Statehood Event
Based on data associated with the Reserve Bank of India, which the company referenced, the value of fraudulent activities surpassed Rs.1,400 crore in the fiscal year 2024. This situation has initiated increased regulatory attention on exploring alternative authentication methods, such as biometrics.
The firms announced that the implementation is consistent with regulatory guidelines advocating for the adoption of biometric and risk-based authentication methods. This initiative also mirrors a larger movement towards device-integrated authentication within the realm of digital transactions.