Federal Bank Launches India’s First Biometric Authentication for E-Commerce Card Payments

Federal Bank has introduced India’s first biometric authentication system for e-commerce card transactions, enabling customers to complete online purchases using fingerprint or facial recognition instead of a one-time password. Developed in partnership with fintech firms M2P and MinkasuPay, the system meets the Reserve Bank of India’s two-factor authentication requirements while reducing checkout time to just three to four seconds.

India’s First Card-Based Biometric Checkout Goes Live

The solution allows users to authenticate transactions with their device’s built-in biometric features after a one-time setup. It works on both Android and iOS platforms and is now live across a select group of merchant apps, including EaseMyTrip, Ixigo, and NetMeds. More platforms are expected to adopt the technology in phases.

According to Federal Bank, all biometric data remains securely stored on the user’s handset and is never transmitted to merchants or external servers. If biometric verification fails or is unavailable, the system defaults to the traditional OTP-based method, ensuring users retain access to secure payments under all conditions. The feature requires the user’s phone number to be consistent across both the merchant app and the bank’s records.

Digital Payments Continue to Evolve in India

The launch reflects broader momentum in India’s financial technology space, where biometric solutions are increasingly used to streamline authentication. In March 2025, IDFC FIRST Bank relaunched its Aadhaar Pay platform, allowing users to complete in-person transactions using Aadhaar-based biometric data.

Federal Bank’s entry into biometric e-commerce authentication comes amid growing interest in secure, password-free payment options across global markets. In Europe, tokenized payments now account for half of all e-commerce transactions made with Mastercard, signaling strong consumer demand for frictionless security measures. Meanwhile, India continues to position itself as a global leader in digital identity and payments innovation, supported by mobile-first infrastructure and expanding fintech ecosystems.

The biometric authentication feature is expected to see broader adoption in the coming months as additional merchants and users onboard. With its focus on speed, security, and convenience, the system represents a notable advancement in the evolution of digital payments in India.

Sources: The Paypers, Economic Times

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By the ID Tech Editorial Team