Context:
Federal Bank, in collaboration with fintech partners M2P and MinkasuPay, has launched India’s first biometric authentication solution for e-commerce card payments. This initiative marks a significant step toward enhancing security, speed, and user experience in digital payments.
What is the Solution?
- A biometric-based authentication system that replaces the traditional OTP-based two-factor authentication (2FA) for online card transactions.
- Users can verify transactions using Fingerprint or Face ID on compatible devices.
Partnerships Involved
- Federal Bank (implementing bank)
- M2P Fintech (backend infrastructure)
- MinkasuPay (biometric tech provider)
Key Features of the Biometric Solution
- Authentication via Fingerprint or Face ID, replacing OTP-based verification.
- Reduces transaction time to just 3–4 seconds.
- Fully compliant with RBI’s Two-Factor Authentication (2FA) guidelines.
- Fallback to OTP is available if biometric capture fails.
- Customers can enrol with one-time consent during checkout.
- Available for Android and iOS smartphones.
- Integrable by merchants using a lightweight SDK.
Key Benefits for Customers
- No more OTPs – authentication via biometric (touch or face).
- Faster checkouts – transactions completed in 3–4 seconds.
- Top-tier security – each transaction is uniquely validated by the user’s device.
- Opt-in flexibility – customers can enable or disable the feature anytime, with OTP fallback as a backup.
- Compliance with RBI guidelines – follows mandatory 2FA norms, with biometric + fallback options.
How It Works
- Customers enroll with a one-time consent during checkout.
- Works via lightweight SDKs integrated by partner merchants.
- Supported on both Android and iOS platforms.
