Flipkart, Axis Bank, and PayU have introduced biometric authentication for card payments, allowing Axis Bank cardholders to verify transactions using fingerprint or Face ID on compatible Android and iOS devices instead of traditional SMS OTPs.

This initiative marks Flipkart as one of the first major Indian e-commerce platforms to offer biometric verification for card payments. The system leverages device security and streamlined authentication processes managed by PayU, with Axis Bank utilizing Wibmo to handle biometric verifications on the issuer side.

By employing device fingerprinting and optimized checks, this new method aims to reduce risks associated with SIM-swap fraud while providing a more convenient verification process familiar to smartphone users.

Regulatory and Fraud Context

The move aligns with the Reserve Bank of India’s guidelines for digital payment authentication, encouraging biometric and risk-based methods over SMS OTPs. In the fiscal year 2024, digital payment fraud in India increased significantly to approximately USD 14.69 (INR 1.400 crore), highlighting the necessity to move beyond reliance on SMS-based verification.

The partnership demonstrates a commitment to enhancing safety and security for consumer payments as fraud tactics evolve and regulatory standards for robust authentication become more stringent.

Gaurav Arora, Vice President of Payments and SuperCoins at Flipkart, noted that the integration of biometric authentication underscores Flipkart’s dedication to ensuring secure transactions. Hemang Dattani, Chief Business Officer at PayU Payments, stated that this collaboration is a significant step toward improving the speed and security of digital payments for Indian consumers.