Zeta and Pluxee have successfully launched passkey-based authentication for RuPay prepaid card transactions, marking a significant advancement in digital payment security. According to reports from The Hindu BusinessLine, the capability was announced in Mumbai on September 11, 2026, and is enabled on the RuPay network by the National Payments Corporation of India. The new system replaces traditional SMS one-time passwords with device-bound cryptographic credentials for online payments.
Under the new system, cardholders register a passkey once at checkout, confirmed by a single OTP, and subsequently authenticate transactions using biometrics such as fingerprint or facial recognition, or a device PIN, with no further SMS OTP required. As reported by The Hindu BusinessLine, Zeta states that passkey authentication completes in roughly 5-7 seconds, compared to 15-25 seconds for conventional OTP flows. The company reports that registration completion rates in its implementation have been approximately 99 per cent. According to Zeta's latest statements, passkey registration typically takes approximately 7-8 seconds, with the authentication process reducing authentication time by around 70% compared to conventional OTP flows.
The launch represents a significant shift toward cryptographic authentication mechanisms that are increasingly resilient against fraud. As Ramki Gaddipati, Co-founder, APAC CEO & Global CTO of Zeta, explained, "The RBI's push for stronger authentication mechanisms beyond OTPs, particularly in the wake of rising digital-payment fraud, is an important inflection point for the industry. The larger shift underway is from authentication based on credentials that can be intercepted or socially engineered to cryptographic trust that can be bound to a device, an identity, and ultimately the context of a transaction." According to Zeta, authentication is expected to become increasingly invisible, contextual and risk-aware, with stronger assurance built into transactions rather than added as friction around them.
The launch addresses rising digital payment fraud in India, which crossed ₹21,367 crore in FY2025, more than five times the prior year, according to reports from The Hindu BusinessLine. UPI fraud cases rose 85% year-on-year, highlighting the urgent need for stronger authentication mechanisms. The initiative aligns with the Reserve Bank of India's two-factor authentication mandate, which became effective on April 1, 2026, pushing issuers beyond SMS OTPs toward dynamic, device-bound authentication factors. Passkeys use cryptographic credentials that cannot be phished or intercepted, reducing exposure to card-not-present fraud and potentially lowering associated fraud losses and chargebacks.
For merchants, the fewer checkout steps could lower authentication-related drop-offs and improve conversion rates, as reported by The Hindu BusinessLine. Anish Sarkar, Managing Director Pluxee India and Director – India/ Philippines/ Indonesia Cluster, emphasized that "Our cardholders use their Pluxee cards for everyday purchases, making a seamless and secure payment experience a priority for us. Passkey authentication is a meaningful step towards making digital payments simpler and faster, while maintaining strong security." Zeta indicated it is working with additional RuPay issuers to extend passkey authentication to a broader cardholder base, with the technology representing a significant step forward in enhancing security and reducing fraud in digital transactions while improving the user experience for both cardholders and merchants.
