Major financial and e-commerce players have introduced a new authentication system for card payments that eliminates traditional OTP verification requirements. According to reports from Upstox, Axis Bank, Flipkart, and PayU have collaborated to implement biometric verification for card transactions. The feature is now live on Flipkart's platform, allowing Axis Bank cardholders to authenticate payments directly from their supported Android and iOS devices using Face ID or fingerprint instead of traditional one-time passwords (OTPs). As reported by BW Retail World, Flipkart becomes one of the leading Indian e-commerce platforms to offer biometric verification for card payments, as online merchants increasingly seek faster and more secure checkout experiences. The collaboration aligns with the Reserve Bank of India's 2025 Authentication Mechanisms for Digital Payment Transactions Directions, which explicitly encouraged the shift from SMS OTPs toward biometric and risk-based authentication. Speaking on the launch, Gaurav Arora, Vice President, Payments and SuperCoins at Flipkart, emphasized the company's commitment to building safety into consumer payments while delivering an intuitive and seamless payment experience that meets the highest standards of consumer protection.
The new authentication system allows users to verify transactions using fingerprint or Face ID on supporting Android and iOS devices, eliminating the need for one-time passwords. As reported by Upstox, this biometric verification system represents a significant upgrade from traditional OTP-led verification methods. According to BW Retail World, the system is designed to reduce failed transactions and delays linked to SMS OTP delivery, while improving user convenience during checkout. The device-bound, fraud-resistant system incorporates device binding, device fingerprinting and enhanced fraud checks, aimed at reducing risks such as SIM-swap attacks and OTP interception fraud. 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 while addressing significant friction points in digital payments. The issuer-level biometric verification and device binding through Wibmo significantly improves the speed and security of online payments for Axis Bank cardholders.
Under the arrangement, PayU manages the merchant-side technology infrastructure, including device security and authentication flows, while Axis Bank uses Wibmo, a PayU company, for issuer-side biometric verification. As reported by BW Retail World, the model incorporates device binding, device fingerprinting and enhanced fraud checks, aimed at reducing risks such as SIM-swap attacks and OTP interception fraud. The companies added that the system is designed to support higher transaction success rates and smoother conversions for online retailers, especially during high-volume sale periods when OTP delays can impact purchase completion. The cross-ecosystem alignment demonstrates real intent and deep partnership between the three companies, with Flipkart bringing its checkout scale, PayU building the merchant-side infrastructure, and Axis Bank connecting its cardholder base through Wibmo's issuer verification. Hemang Dattani, Chief Business Officer, PayU Payments, noted that the partnership marks a meaningful step toward building a faster, more secure and frictionless digital payments experience for Indian consumers.
The biometric payment feature is being introduced in phases, starting with Axis Bank card users on Flipkart, with wider expansion expected over time as more devices and users are added. According to CXO Media, this phased rollout approach allows the companies to test and refine the system before broader implementation. The initiative comes as digital payment fraud values surged more than fivefold to exceed ₹1,400 crore in FY 2024, according to RBI-linked data, prompting greater focus on stronger authentication standards. Arnika Dixit, President & Head – Cards, Payments and Wealth Management, Axis Bank, emphasized that customers expect digital payments to be not only safe but effortless, with biometric authentication delivering a secure, one-touch approval experience. The move represents proactive compliance with regulatory directives, showing how innovation and regulatory rigour can coexist in the same product, building lasting trust with consumers while establishing a strong model for device-bound biometric card authentication that supports the next generation of secure digital transactions in India.
