Source: Mint
Context:
UPI (Unified Payments Interface) users in India can now authenticate payments using fingerprints or facial scans instead of entering a PIN. This move is aimed at making payments faster, easier, and safer, especially for first-time users and senior citizens.
How UPI worked earlier:
- Every UPI transaction required entering a Personal Identification Number (PIN).
- PINs were vulnerable to frauds, including phishing, fake QR codes, and SIM cloning.
About biometric authentication:
- Uses unique physical features like fingerprints or face for verification.
- Safer than PINs because biometric data cannot be easily cloned.
- Makes UPI more accessible for people with limited literacy.
Other uses:
- Aadhaar-based face authentication can now be used to set or reset UPI PIN, removing the need for debit card details or OTPs.
Economic impact:
- Frictionless payments can increase the speed and volume of transactions, acting as a growth multiplier for the economy.
- Easier payments can democratise UPI, encouraging more users from rural and urban areas alike.
Significance:
- Improves security and convenience for users.
- Likely to boost UPI adoption, transaction volumes, and digital payment penetration across India.
