In September 2025, following the Reserve Bank of India’s new authentication guidelines, Razorpay has introduced a biometric system for online card payments in collaboration with Yes Bank. This solution is designed to align with regulatory requirements that mandate at least two-factor authentication methods.
Introduction of Biometric Authentication
The innovative Access Control Server allows cardholders to authenticate payment processes using fingerprint or facial recognition, as an alternative to one-time passwords (OTPs). The primary aim of this approach is to mitigate the roughly 35% of payment failures caused by OTP delays or errors.
Razorpay’s representatives highlighted that the biometric-ready ACS incorporates device tokenization and passkey standards, equipped with an AI-driven risk engine for real-time transaction monitoring. This system supports high volume processing and strives to lower transaction failure rates while adhering to regulatory compliance.
Enhancing Security and Efficiency
According to Yes Bank officials, the collaboration underscores their commitment to improving digital payment security and operational efficiency. They emphasized that biometric verification provides customers with a quicker and more reliable authentication process.
Both companies noted that the system’s design not only reduces exposure to fraud for banks but also minimizes customer drop-offs during transactions, maintaining consistency across devices. This collaboration is expected to benefit merchants by increasing checkout completion rates and offering consumers a faster and more secure payment experience.
Razorpay’s Recent Initiatives
In September 2025, Razorpay expanded its international presence by integrating Apple Pay for International Payments. This move was aimed at reducing cart abandonment rates among global customers who might have found the payment process less trustworthy.
The integration of Apple Pay allows businesses to offer their overseas clients a familiar and secure payment method directly within the Razorpay checkout process, enhancing overall customer satisfaction and transaction completion rates.
