Pay with your fingerprint or face, and get cash at Micro ATMs; All you need to know about new UPI features

The National Payments Corporation of India (NPCI) on Tuesday launched a slew of digital initiatives aimed at simplifying and securing digital payments, including on-device biometric authentication for Unified Payments Interface (UPI) transactions.

It also launched an Aadhaar-based Face Authentication in UPI to enable Aadhaar-linked biometric authentication for setting or resetting UPI PIN and cash withdrawal using UPI through Micro ATMs.

Department of Financial Services (DFS) Secretary M Nagaraju unveiled the features at the Global Fintech Festival (GFF) 2025 in Mumbai.

UPI with on-device biometric authentication

Customers can now authenticate UPI payments directly through their smartphone's built-in security options, such as fingerprint or face unlock, instead of manually entering the UPI PIN.

The facility is optional and allows users to choose their preferred mode of verification.

“It aims to make payments faster and more secure by reducing the need for repeated PIN entries,” NPCI said in a statement.

Transactions will continue to be verified by issuing banks using cryptographic checks to ensure security.

Aadhaar-based face authentication in UPI

The Aadhaar-based face authentication feature enables users to set or reset their UPI PIN using facial recognition linked to their Aadhaar, replacing the current process that requires debit card details or Aadhaar OTP verification.

The system uses the Unique Identification Authority of India’s (UIDAI) FaceRD app for facial verification, eliminating the need to manage multiple OTPs or card details.

“With Aadhaar based Face Authentication for UPI PIN, onboarding becomes faster, simpler, and more inclusive, especially for first-time users, senior citizens, and those without easy access to cards,” NCPI said.

Cash withdrawal through Micro ATMs

The cash withdrawal through Micro ATMs using the UPI feature allows users to withdraw cash at Business Correspondent (BC) touchpoints, or UPI Cash Points, by scanning a QR code displayed on the Micro ATM and authorising the transaction through their UPI app.

This mode supplements existing Aadhaar-enabled Payment System (AePS) and card-based withdrawals.

“This initiative is aimed at advancing financial inclusion by improving access to cash for customers, particularly in underserved areas,” the statement read.

The DFS said the new features would be rolled out in phases in collaboration with the National Payments Corporation of India (NPCI), UIDAI and partner banks.

Apart from these, Reserve Bank Deputy Governor T. Rabi Sankar also launched several products at the same event, including an initiative that allows joint account holders and multi-signatory account holders to use UPI for payments.

The DG also launched small-value transactions using wearable glasses via UPI Lite, as well as forex on Bharat Connect.

Global payments major Paypal also announced a tie-up with NPCI arm NPCI International Payments to integrate UPI on Paypal World, a global platform expected to launch in 2025.

The NPCI arm becomes the first entity globally to partner with the nearly 25-year-old PayPal's new service, which will help Indians using UPI make payments to foreign merchants in Indian rupees.