Axis Bank, Flipkart and PayU offer stronger digital authentication on card payments; do away with OTP requirement

Major player including Axis Bank, Flipkart and PayU have come together to offer biometric verification on card payments. Doing away with the requirement of OTP-led verification, the initiative allows users to authenticate transactions using their fingerprint or Face ID on supporting Android and iOS devices.

The feature is first made available for Axis Bank customers via issuer‐ level biometric verification. And with the new launch, Flipkart is now among the leading e-commerce companies offering biometric authentication for card payments.

The feature offers customers a more secure method of authentication backed by device fingerprinting and enhanced checks, reducing the risk of SIM‐ swap or OTP‐ based fraud, noted the release.

The move addresses several friction points in the digital payment ecosystem, backing the payments using the system that is more secure and known to smartphone users already.

In the joint effort, PayU manages the merchant-side infrastructure, including device security and authentication flows while Axis Bank leverages Wibmo (a PayU company) to power biometric verification on the issuer side, it added.

Rising digital fraud taken care of

The RBI, in view of the rising digital frauds which increased fivefold in value exceeding ₹1,400 crore in FY 2024, came up with the 'Authentication Mechanisms for Digital Payment Transactions Directions, 2025' circular. The circular guided increased adoption of biometric and risk-based authentication over SMS OTPs.

The strategic partnership works to comply with the RBI’s mandate for stronger digital authentication mechanisms.

Commenting on the collaboration, Hemang Dattani, Chief Business Officer, PayU Payments, said, “As digital commerce continues to scale in India, simplifying payments without compromising on security is critical. By combining biometric authentication with enhanced security controls, this partnership marks a meaningful step towards building a faster, more secure and frictionless digital payments experience for Indian consumers.”

The rollout is a step forward in the creation of a robust model for a device bond biometric card authentication.