New Delhi: Federal Bank has introduced biometric authentication for e-commerce transactions, becoming the first Indian bank to do so.
The new feature allows customers to approve online card payments using their phone’s fingerprint or face recognition instead of a one-time password (OTP). It is currently available to Federal Bank debit and credit card holders on select merchant platforms.
The bank’s new system eliminates the need for OTPs by integrating device-level biometrics for verification. Customers only need to provide one-time consent during their first transaction on a supported merchant’s website or app. After that, payments can be authenticated with a fingerprint or Face ID on compatible Android or iOS devices.
This biometric payment feature is enabled through a collaboration with fintech companies M2P and MinkasuPay. According to the bank, it aims to reduce transaction time to 3–4 seconds while maintaining compliance with the Reserve Bank of India’s two-factor authentication guidelines.
In case a biometric verification fails, or a customer’s device does not support biometrics, the system will automatically switch back to the traditional OTP-based authentication. This ensures accessibility while adding a new layer of convenience for users with biometric-enabled smartphones.
The feature is currently live only with selected merchant partners, with plans for a phased rollout. Merchants looking to integrate the feature can do so through a software development kit provided by MinkasuPay and M2P.
CXO News Analysis
Federal Bank’s move marks a shift in how digital transactions may be conducted in the near future, as more institutions look for alternatives to OTP-based systems that can sometimes cause delays or fail due to poor network connectivity. The biometric approach leverages existing hardware in smartphones to streamline the payment experience while adhering to security regulations.
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