Startup Originals Team
In a pioneering move aimed at enhancing the security and convenience of online transactions, Federal Bank has launched India’s first biometric authentication system for e-commerce card payments. Now, customers can authenticate their online purchases using fingerprint or Face ID, eliminating the need for cumbersome one-time passwords (OTPs). This innovative solution promises faster, safer, and smoother digital payment experiences for Federal Bank customers.
Revolutionizing Online Payment Authentication:
Traditionally, online payments have relied heavily on OTPs as a form of two-factor authentication. While effective, OTPs often cause delays and lead to customer frustration due to their time-consuming nature. Federal Bank’s new biometric authentication replaces these OTPs with secure fingerprint or facial recognition technology, cutting down transaction time to just 3–4 seconds.
Partnership with Leading Fintech Innovators:
Federal Bank partnered with fintech firms M2P and MinkasuPay to develop and implement this cutting-edge authentication method. M2P Fintech specializes in secure and scalable payment infrastructure, while MinkasuPay provides biometric payment gateway solutions. Together, they have created a seamless, secure payment system that is fully compliant with the Reserve Bank of India’s two-factor authentication (2FA) requirements.
How the Biometric Authentication Works:
Customers can enroll in the biometric authentication feature with a simple one-time consent during the checkout process on partner merchant apps. Once enrolled, users authenticate payments using their device’s fingerprint scanner or Face ID, depending on their smartphone’s capabilities. The solution currently supports both Android and iOS devices and can be easily integrated into merchant apps via a lightweight software development kit (SDK).
If for any reason biometric data is not captured successfully, the system provides a fallback option allowing customers to authenticate via OTP, ensuring uninterrupted payment flow.
Benefits to Customers and Merchants:
For Customers:
- Faster Payments: Transactions are completed within approximately three seconds, reducing waiting time dramatically.
- Enhanced Security: Each transaction is uniquely validated by the customer’s device biometric data, minimizing fraud risks.
- User-Friendly Experience: The biometric method feels natural and is easy to use, eliminating the repetitive hassle of entering OTPs.
- Full Control: Customers can choose to opt in or out anytime and revert to traditional authentication methods if preferred.
For Merchants:
- Seamless Integration: The SDK enables quick adoption without significant changes to existing payment systems.
- Improved Conversion: Faster and smoother checkout processes reduce cart abandonment and improve sales.
- Compliance Assured: The method adheres strictly to RBI guidelines on 2FA, maintaining regulatory compliance.
Statements from Key Leaders:
Virat Sunil Diwanji, National Head – Consumer Banking at Federal Bank, emphasized the transformational impact:
“This launch is more than a tech upgrade – it’s a transformation in how our customers experience banking. Biometric authentication makes secure payments feel natural and seamless. With our partners M2P and MinkasuPay, we set a new national benchmark in frictionless digital transactions.”
Hanuman Kamma from M2P Fintech highlighted the importance of innovation:
“We are proud to enable India’s first biometric authentication for e-commerce card transactions. This collaboration shows what happens when secure technology meets user convenience.”
Anbu Gounder, CEO of MinkasuPay, added:
“Our goal is to provide the most secure and smooth payment experience globally, integrating biometric authentication while ensuring robust two-factor security for every transaction.”
Current Status and Future Expansion:
This biometric payment authentication feature is presently available for Federal Bank debit and credit cardholders across select partnered merchant platforms. The bank plans to roll it out more widely in phases, aiming to cover a greater number of customers and merchants soon.
Conclusion:
Federal Bank’s biometric authentication system sets a new standard in India’s digital payments landscape. By eliminating OTPs and leveraging fingerprint and facial recognition, it drastically improves transaction speed and security. This development marks a significant step towards a more user-friendly and fraud-resistant online payment ecosystem in India.
