India-based Federal Bank has introduced a biometric authentication feature for debit and credit card transactions on e-commerce platforms.
This move enables customers to verify purchases through facial recognition or fingerprint scans. The solution was developed in collaboration with fintech companies M2P and MinkasuPay.
Replacing the traditional one-time password (OTP) method, this system aims to reduce transaction times to about three to four seconds. According to the bank, it works across supported Android and iOS devices, allowing customers to enroll during the checkout process with a single consent step.
Compliance and merchant adoption
The biometric system complies with the Reserve Bank of India’s two-factor authentication requirements, offering an OTP fallback in case of unsuccessful biometric verification. Federal Bank has made this feature available to cardholders transacting with a select group of partner merchants, with broader access planned for future phases.
Bank officials noted that the technology is designed to be both efficient and compliant, providing an alternative to existing verification methods without compromising on regulatory standards. Merchants can integrate this functionality through a lightweight software development kit provided by Federal Bank.
A representative from the bank emphasized that this deployment represents an evolving approach in digital banking interactions, aimed at making verification processes more secure yet less intrusive for customers.
Other recent initiatives
In March 2025, Federal Bank partnered with Kaleidofin to enhance risk management capabilities. This collaboration was designed to strengthen the bank’s risk assessment and management systems specifically for its microfinance loan portfolio.
The partnership aligned with Federal Bank’s efforts to promote financial inclusion by providing technology-driven solutions tailored to meet the needs of a broader customer base. By utilizing ki view and the ki score, Federal Bank improved its ability to assess the financial health of microfinance customers during onboarding.
