Razorpay Introduces Biometric Payments: No More OTP or PIN Needed for Card Transactions

Digital payment leader Razorpay has revolutionized the way Indians make card payments by introducing a biometric authentication feature, eliminating the need for OTP or PIN verification. This new system allows users to authorize transactions using facial recognition or fingerprint scans, offering a faster and more secure payment experience.

The company unveiled this next-generation feature at the Global Fintech Fest (GFF) 2025, with Razorpay CEO Harshil Mathur announcing its launch in partnership with YES Bank. The move marks a significant step toward simplifying digital transactions while maintaining the highest level of security for users.

Why Razorpay Introduced Biometric Payments

Traditionally, card payments in India require entering a PIN or verifying an OTP (One-Time Password) sent via SMS. However, OTP delivery delays and network issues often lead to failed or delayed transactions, especially during peak usage hours.

Explaining the challenge, Harshil Mathur said,

“The problem with OTPs is that they don’t always arrive on time or sometimes network connectivity fails, resulting in 5–10% of transactions failing. We wanted to remove this friction completely.”

To address this issue, Razorpay developed a biometric verification system that allows users to simply use their face or fingerprint to complete a transaction securely — no codes or waiting required.

How the New System Works

With this feature, when a user makes a card payment online or through a partnered merchant, instead of receiving an OTP, they will be prompted for biometric verification.

• If their smartphone supports Face ID, the transaction will be authorized through facial recognition.

• Devices with fingerprint sensors will use the fingerprint for authentication.

This streamlined process reduces dependency on mobile networks, minimizes failures, and speeds up payments — enhancing the overall user experience.

More Security, More Convenience

Mathur emphasized that biometric verification offers two key benefits: enhanced security and higher transaction success rates.

“It’s far more secure and improves the success rate significantly. This is the next generation of payments that will take India ahead globally in terms of how payments are authorized,” he said.

The biometric data never leaves the user’s device, ensuring privacy and compliance with India’s strict data protection standards. The encrypted process adds an extra layer of security against fraud or unauthorized access.

A Major Leap for India’s Fintech Ecosystem

The introduction of biometric authentication comes at a time when India’s digital payments ecosystem is witnessing rapid growth. With billions of card transactions processed each year, removing OTP-based barriers could lead to smoother, faster, and safer digital transactions across the country.

Razorpay’s innovation aligns with India’s broader vision of “Digital India,” where convenience, inclusivity, and security form the backbone of fintech development. Experts believe this step could set a global benchmark for how authentication in payments evolves in the future.

What’s Next?

Razorpay’s biometric payments will initially roll out with YES Bank and gradually expand to other banks and financial partners. Users can expect the feature to be integrated across online merchants and apps in the coming months.

As India continues to lead the global fintech revolution, innovations like this show how homegrown companies are redefining digital payment experiences, making transactions both smarter and safer.