Biometric Payment Authentication

What a few years ago seemed like science fiction, is becoming today common place: #payments with the wave of our hand. Let’s take a look. We are in the middle of a paradox: the more payments gain importance, the more they take a back seat and become invisible. Nowhere is this statement more applicable than in biometric payments, which is the ability to use biometrics such as our face, our fingerprint or even our voice to authenticate (identify) ourselves so that we can make a payment. These are real-life examples: -   Canada’s RBC bank allows since years clients to pay their bills using their voice (via the iPhone's Siri assistant).   -   Amazon launched last year to all 500+ Whole Foods Market stores in the US it’s palm recognition service for identification, payment, loyalty membership, and entry.   -   In China tech giant Tencent is going all in on #biometrics: Weixin Palm Payment allows Weixin users to pay on the subway by swiping hovering their hands over a sensor. Infrared cameras then analyze the individual palm prints and unique patterns of veins under the skin, allowing each user to be identified and payment to be processed within seconds (source: CNN).   -   Last year JP Morgan began piloting biometrics-based payments (palm and face identification for payments authentication in-store) with select retailers in the US.   -   Self-service ordering kiosks or payment terminals with biometrical functionalities are one of the main use cases gaining ground. In #China such options are available at selected supermarkets or McDonald’s locations. But why are biometric payments rising? -   In today’s rapidly evolving payments landscape competition has moved from the infrastructure to the front-end. UX is the name of the game and biometrics enable better customer experiences. -   The rise of mobile and contactless payments is driving demand for biometrics. -   Efficiency, which translates into cost benefits. Especially, when it comes to use cases such as self-service kiosks, biometrics are a reliable, 24/7 alternative that saves costs. -   Biometrics are significantly simplifying and enhancing loyalty programs by offering a faster and easier identification and check-out process (Face ID instead of the manual process of pulling out a card and identifying myself). -   Biological characteristics are much more difficult to replicate or steal and therefore offer enhanced security, which translates into reduced frauds. The numbers are indicative: -   Goode Intelligence forecasts that global biometric payments will reach $5.8 trillion and 3 billion users by 2026. -   Juniper Research expects biometrics "will authenticate over $3 trillion of payment transactions in 2025," compared to $404 billion in  2020. If biometric payments can, in the short term, address issues such as privacy & security, #technology, regulation, accessibility, trust & social acceptance, then their longer-term future looks bright. Opinions: Panagiotis Kriaris

We trust Face ID to unlock our phones. We trust it for banking apps. We trust it to access passwords, emails, even private photos. But when it comes to payments… we suddenly don’t trust it? We still type a 6-digit PIN. Slowly. Carefully. Sometimes twice. Doesn’t make sense. This is exactly what I found interesting about what BHIM Payments App just launched. You can now make UPI payments using biometric authentication Face ID or fingerprint. No PIN needed for everyday transactions. And before you think this is some shortcut that compromises safety, it’s actually the opposite. The biometric authentication stays on your device. Nothing gets stored or shared outside. And for higher value payments(over Rs. 5,000), PIN is still there as a fallback. So you’re not losing control. You’re just removing unnecessary friction. If you think about it, most payment failures today don’t happen because of lack of funds. They happen because: Wrong PIN Slow typing Switching between apps People just dropping off midway We’ve all been there. Biometrics fix that behaviour. It feels natural. The same way you unlock your phone, you complete a payment. No extra thinking. No extra steps. And that’s how real adoption happens in India. Not by adding more features. But by making things so simple that even a first-time user doesn’t have to think. UPI changed how India pays. This feels like the next layer of that evolution. NPCI BHIM

🇦🇪 UAE Sets a New Global Benchmark in Payments & Open Finance The Central Bank of The UAE (CBUAE) has unveiled the region's first biometric payment solution — a proof of concept enabling in-person transactions via facial and palm recognition, entirely without cards, wallets, or mobile devices. Currently piloted at the Dubai Land Department under the CBUAE Sandbox Programme, in partnership with Network International and powered by PopID, this isn't just another payment innovation. It's a strategic piece of the UAE's digital finance infrastructure. Why This Matters: 1. Authentication Without Friction Biometric payments eliminate dependency on physical tokens (cards, devices) and knowledge-based credentials (PINs, passwords). The result: stronger security posture, reduced fraud vectors, and a more inclusive payment ecosystem for underbanked populations. 2. Foundation for Open Finance Interoperability The UAE is architecting a consolidated Open Finance framework with a centralized API hub that enables consent-based data sharing and payment initiation across banking, insurance, and adjacent financial services. Biometric authentication becomes a native identity layer in this stack — linking customer consent, data portability, and real-time authorization at the infrastructure level. 3. Enabling Next-Gen Financial Products When identity verification, payment authorization, and consent management are embedded into the authentication layer itself, you unlock: embedded finance experiences, real-time personalized offers, seamless account aggregation, cross-institutional loyalty and rewards programs, and programmable payment flows tied to smart contracts or IoT triggers. 4. Regulatory-First Innovation Model What distinguishes the UAE's approach is the tight integration between regulatory sandboxes, fintech collaboration frameworks, and national infrastructure projects (RTGS modernization, instant payments rails, Open Finance APIs). This isn't fragmented experimentation — it's coordinated ecosystem building with central bank oversight. The Bigger Picture: The UAE is constructing a financial infrastructure where identity, consent, and data are programmable primitives — not afterthoughts. Biometric payments are an interface layer to a deeper architecture: one where customers control data flows, institutions compete on experience rather than lock-in, and regulators maintain systemic oversight without stifling innovation. This positions the UAE not just as a regional leader, but as a reference architecture for how Open Finance, digital identity, and payment innovation converge in regulated environments. 📄 Full details: https://lnkd.in/gTsFH33J Payment Labs #OpenFinance #Fintech #UAE #DigitalIdentity #Payments #EmbeddedFinance #Regulatory #Stablecoins

#FinTech | #Payments : #UPI 's Next Frontier - Payments via #Biometrics & Internet of Things Rails. Smart devices are poised to become the next bastion for UPI, with the National Payments Corporation Of India (NPCI) building the Internet of Things (IoT) rails to support a staggering 10x growth. Let’s unpack what this means for the future of payments in India. The integration of IoT with UPI is a game-changer. Imagine your smart appliances, wearables, and even connected cars initiating payments autonomously—think parking fees paid directly from your car, metro tickets via a wearable, or subscription renewals without opening a banking app. This upgrade, powered by UPI Circle and AutoPay, delegates payments to devices linked to a user’s primary account, enhancing convenience and efficiency. A senior industry executive hinted at the nuance involved, noting that while the technology is promising, all UPI transactions must still be executed through a mobile phone for now—though future updates may allow devices to process payments independently. Biometrics is another frontier set to transform UPI. With PIN theft and fraud concerns rising (over 80% of digital transactions in India now rely on UPI), NPCI is exploring facial recognition and fingerprint authentication as alternatives to the traditional PIN. This move, still in the work-in-progress (WIP) stage, aims to enhance security and convenience, potentially rolling out after a demo at the 2025 Global Fintech Fest—pending Reserve Bank of India approvals. The idea of using biometrics stored in a user’s device or encrypted in a common library could make transactions smoother while safeguarding against #fraud. NPCI’s 2025 innovation roadmap includes features like UPI Lite X for offline payments and credit line integration, already rolled out in 2023. The expansion into IoT and biometrics comes as UPI clocked 18.4 billion transactions in June, with a public target of growing UPI’s share to 83.4% of payment volumes by FY25 (up from 79.4% in FY24). This aligns with India’s ambition to lead the global fintech narrative, as highlighted by NPCI’s leadership. What are your thoughts on this IoT and biometric evolution for UPI? Will it redefine how we interact with smart devices daily, or do you see challenges in security and adoption? EmpowerEdge Ventures

🔒 𝗧𝗼𝗱𝗮𝘆'𝘀 𝗧𝗲𝗰𝗵𝗻𝗶𝗰𝗮𝗹 𝗗𝗲𝗲𝗽-𝗗𝗶𝘃𝗲: 𝗧𝗵𝗲 𝗘𝘃𝗼𝗹𝘂𝘁𝗶𝗼𝗻 𝗼𝗳 𝟯𝗗 𝗦𝗲𝗰𝘂𝗿𝗲 𝗔𝘂𝘁𝗵𝗲𝗻𝘁𝗶𝗰𝗮𝘁𝗶𝗼𝗻 Let's look at how 3D Secure 2.0 (3DS 2.0) is revolutionizing payment authentication, with a focus on the technical implementation. 𝗧𝗵𝗲 𝗘𝘃𝗼𝗹𝘂𝘁𝗶𝗼𝗻 -- Originally developed in 1999, 3DS was built on a three-domain model: • Acquirer Domain (merchant/bank receiving payment) • Issuer Domain (cardholder's bank) • Interoperability Domain (supporting infrastructure) 🔧 𝗧𝗲𝗰𝗵𝗻𝗶𝗰𝗮𝗹 𝗔𝗿𝗰𝗵𝗶𝘁𝗲𝗰𝘁𝘂𝗿𝗲 - 𝟯𝗗𝗦 𝟮.𝟬 𝗘𝗻𝗵𝗮𝗻𝗰𝗲𝗱 𝗙𝗹𝗼𝘄 1. Customer initiates checkout 2. Merchant sends transaction to fraud vendor including data like:   • Device fingerprinting   • Geolocation data   • Transaction history   • Behavioral biometrics 3. Real-time risk assessment from fraud vendor -- Is the transaction risky? 4.From here, the transaction takes one of two possible paths:   a) Frictionless: Background authentication for low-risk transactions   b) Challenge: Biometric or one-time code for high-risk cases 🛠️ 𝗧𝗲𝗰𝗵𝗻𝗶𝗰𝗮𝗹 𝗜𝗺𝗽𝗿𝗼𝘃𝗲𝗺𝗲𝗻𝘁𝘀 𝗼𝘃𝗲𝗿 𝟯𝗗𝗦 𝟭.𝟬 1. Authentication Methods: • SDK integration for native mobile apps • Browser fingerprinting • Device binding • Biometric authentication • One-time passcodes 2. Data Exchange: • Minimum 20 data points required • Up to 100 data points supported • Real-time risk scoring • Device-specific information • Transaction history analysis 3. Protocol Enhancements: • Native app support • Out-of-band authentication • Decoupled authentication flows • Exemption handling • Delegated authentication support 💡 𝗜𝗺𝗽𝗹𝗲𝗺𝗲𝗻𝘁𝗮𝘁𝗶𝗼𝗻 𝗕𝗲𝗻𝗲𝗳𝗶𝘁𝘀: 1. Superior Risk Assessment • 10x more data compared to 3DS 1.0 • Real-time device data collection • Enhanced fraud prevention capabilities • Intelligent risk-based authentication 2. Modern Authentication Methods • Biometric integration • Auto-filling OTP capabilities • Mobile banking app authentication • Device-optimized challenges 3. Enhanced Liability Protection • Fraud chargeback liability shift to issuers • Protection even when issuers don't participate • Reduced merchant risk exposure 4. Seamless Integration • Native SDK support for iOS/Android • Optimized iFrame for browsers • Embedded checkout experience • Device-responsive design 5. Improved Acceptance Rates • Reduced acceptance gap between POS and CNP • Enhanced issuer confidence • Better transaction success rates What are your thoughts on 3DS? 💬 Sources: ACI Worldwide, inai (YC S21), Worldpay #Payments #FinTech #3DS2 #FraudPrevention #Authentication

I still remember the first time an OTP failed right when a client was trying to pay us. Panic, refresh, repeat. We got the money, but it shouldn’t feel that fragile. From April 1, 2026, the #RBI is moving the entire system forward: two-factor authentication will be mandatory for all digital payments, and it doesn’t have to be OTP alone. Biometrics, device tokens, passphrases, and risk-based checks are now part of the toolbox. Cross-border card-not-present payments also undergo tighter validation when the overseas merchant requests it. For those running payments operations, the time for preparation is now. You should not wait to pilot biometric or device-token authentication flows. Crucially, you must establish a risk-based step-up authentication map: low-risk transactions should be processed quickly for a better customer experience, while high-risk transactions must immediately trigger an extra security check. Get firm commitments from your PSPs and issuers, confirming their April 2026 readiness and locking in testing windows. Finally, be ready for customer impact. Train your support teams thoroughly, as new authentication methods will inevitably lead to new and specific customer inquiries. Safer payments, fewer OTP failures, and more flexibility. That’s a good trade. If you’re already testing alternatives to OTP, what’s working best: device tokens, biometrics, or passphrases?

Game changer in e-commerce 👉 Google Pay's alternative to 3D Secure launches. Google Pay users can now use fingerprints, Face IDs, or device PINs to securely checkout online. This service is an alternative to 3D Secure, where merchants ask for a one-time PIN (e.g., SMS), which often leads to a poor experience. Checkout. com claims that testing, this increased checkout speed by 30% and a 3% higher authorization rate. 🧠 Cart abandonment is massive in 3D Secure transactions, leading to lost sales in e-commerce. For that reason, many US-based merchants simply don't bother using it, even if it means potentially higher fraud losses. 🧠 Merchants in Europe will be crying out for solutions like this. If the card issuer and merchant are based in Europe, a step-up verification is required. Strong Customer Authentication (SCA) regulation means going through an extra step to authenticate is common. Some issuers made this lightweight (like Neobanks) by simply asking for biometrics, but it's still horrific for most. 🧠 The liability shift is huge. If a user uses step-up authentication like 3D Secure or Google Pay, the fraud liability shifts to the issuer. Therefore, US credit card companies haven't been very keen on 3D Secure becoming the norm. 🧠 Wallets are becoming the rulers of e-commerce. From a wallet perspective, if a user tries to checkout at a merchant without that wallet (e.g.) Apple Pay. But then, it hits a step-up authentication that just happens to be Apple Pay; Apple gets more revenue and more market opportunity. (The same applies to any branded checkout + wallet, such as Shop, PayPal, or even Paze). 🧠 This is a service PSPs will likely want to sell. The commercial incentives and Wallet dominance make it possible for this type of alternative to 3DS to become more common in the US. If the merchants have less liability and higher authentication, this becomes a no-brainer. 🧠 Where does this leave Paze? It’s hard for Paze's owners to want to shift liability to themselves or launch a branded checkout that also performs a step-up verification in a wallet from a cold start. EWS got a lot of adoption with Zelle, so it’s clearly possible. #fintech #payments #ecommerce

Are One-Time Passwords (OTPs) losing their edge? New avenues like passkeys and biometric authentication are going mainstream in the digital payments industry — with an expectation of a 2-3% point jump in transaction success rates, Pratik Bhakta and Ajay Rag report for The Economic Times (ET). While OTPs have been prone to delivery issues and transaction failures, these new authentication options, being tied to the connected device, lead to higher success rates, the report explains. “We expect biometric-based payment authentication to improve transaction rates,” says Girish Krishnan, payments rewards and merchant services at Amazon Pay. Biometrics authentication also solves the wrong Personal Identification Number (PIN) dilemma for users when using the Unified Payments Interface (UPI), he adds. Technical decline — wrong PIN or backend issues — is the second common reason for UPI transaction failures, data from the National Payments Corporation of India suggests. “The impact (of this move) will likely be most pronounced in card transactions, where a chunk of failures is because of friction points, which biometrics can effectively address,” says Mobikwik’s CEO Bipin Preet Singh. Companies like Visa are amplifying authentication with passkey as the second factor after biometrics. “This reduces dependency on telecom networks and renders phishing or credential replay attacks virtually impossible,” says Ramakrishnan Gopalan, head of products, India & South Asia, Visa. Passkeys also help reduce digital payments processing costs, he adds. Another benefit? Fraud prevention, industry experts share with ET. “With device tokenisation, which is already in place, it’s a much better user experience and also more secure, since an OTP can be shared but this can’t,” Cashfree’s Reeju Datta says. ➡️ How will new authentication methods impact India's digital payments landscape? Share your take in the comments section. Source: The Economic Times: https://lnkd.in/g5dF7hcF ✍: Dipal Desai 📸: Getty Images #digitalpayment

📊 Biometric authentication for payments is having its moment but will it actually move the needle? (In India, probably not) 📊 Over the last 6 months, I’ve been tracking new payment auth methods. It's also a topic Kausthubh Adhikari & I have discussed to death - how will these methods actually work? There have been some updates over the last few weeks: ✅ Minkasu + Federal Bank: biometric auth for online pmts. (Recommend reading their patent, link in the deep dive) ✅ NPCI flagged biometric on UPI as a core innovation area What does payment auth look like today? Well, in India, RBI mandates 2FA for digital payments. That typically means 2 / 3 from the below: 1) Something you have: phone, OTP 2) Something you know: password/PIN 3) Something you are: fingerprint, face ID Banks verify this, but that is changing. Networks want to own more of the flow: 1️⃣ MC & Visa Flexi / One Credential: From 1 cred per account ➝ 1 cred per user per bank. Through this networks will essentially own the customer identity layer (solving fragmented user identity in banks) 2️⃣ From issuer authenticated ➝ 3rd party auth. Networks or 3rd parties (Minkasu) are stepping in to own this The whole point of biometric auth ( outlined in RBI's FY25 pmt vision) is that it moves away from OTP / PIN since those are still susceptible to phishing risk. It's tougher to fake "who you are." ❓How does biometric auth work today? ✅ Visa/MC passkey: Device APIs capture and store biometric creds. A key pair is generated. The private key is stored on device (unlocked by biometric). The public key is stored on the network. A txn triggers a challenge, signed by device pvt key, and verified by network using the public key. The issuer just gets a “yes/no." Auth is offloaded to the network ✅ Minkasu Pay: Public key is stored with Minkasu (versus network), which verifies and confirms to the bank ❓Biometric auth in India could be more challenging to execute 1) Issuer led: Banks store public keys and verify. Not easy 2) Third-party led: Using Minkasu for example. Faster, and probably the easiest way but needs friendly banks 3) Centralized via UIDAI: Here real time creds are captured and verified against stored UIDAI creds. But using government repositories has its own headaches (ex: CKYC) ❓But what’s the benefit of biometric auth? 👉 Online: Maybe lower fraud. In terms of UX, cards & UPI are fairly seamless 👉 Offline: In theory it speeds up queues. In practice, merchants are ditching expensive POS devices. Palm scanners feel like a step backward. For this to scale offline, biometric creds need to be stored centrally, like WeChat, Alipay, MC/ VISA pilots. But India doesn’t allow 3rd parties to store biometric data centrally. And I've talked about UIDAI challenges Visa and MC are betting big on biometrics and identity. But in India? Expect more pilots but it is still a very much a concept, not a revolution 🧠 Deep dive & orchestration flows in comments All views are personal