India's payment system, UPI, is likely to launch a new feature which will further simplify payments. As per a report from Business Standard, the National Payments Corporation of India (NPCI) is looking to launch biometric-based authentication for UPI payments. This implies that users may soon authorize payments via fingerprint or face ID alone, without a need to input their UPI PIN.
Presently, UPI transactions involve a 4 to 6-digit PIN that needs to be entered by users for confirming a payment. Although this PIN ensures security, it can make the process time-consuming and act as a hindrance for those who are not technologically savvy, especially elderly citizens or rural folks. Biometric authentication, however, would authenticate the user through physical attributes such as fingerprint or facial recognition and facilitate payment as a simpler and easier process.
Experts opine that this step would help a large number of users. Rohit Mahajan, Managing Partner and Founder at plutos ONE, said in an interview with Economic Times that biometric authentication would facilitate digital payments for individuals who have difficulties remembering passwords or operating smartphones. He feels it can simplify digital transactions and make them more accessible. Biometric systems can also prevent fraud since physical attributes are harder to copy or steal than PINs.
But the rollout of this feature is still pending and not yet approved. If NPCI goes ahead, they will have to ensure proper privacy protocols and infrastructure are in place. Mahajan stresses the need for ensuring proper deliberation on the consent of the users and data security while rolling out this feature.
While this, NPCI itself also plans to introduce a few tweaks in the way UPI functions from August 1. The most notable among these is a cap on how many times one can check his or her bank balance using UPI apps. This will be restricted to 50 times daily per app. But consumers will get their latest bank balance after each successful transaction, and this may minimize repeated checks for balances.
Another significant alteration pertains to payment schedules. Auto-debit payments like EMIs every month or subscription payments will now be executed only off-peak hours before 10AM or after 9:30PM. This will lessen server load during peak times.
Moreover, users will be able to fetch bank account information associated with their mobile number only 25 times a day, and verify the status of a pending transaction only three times, with a gap of 90 seconds between each attempt.
