OTP-based authentication underpins India’s digital payments but carries friction and risks, with SIM-swap and phishing exposing its vulnerabilities.
India’s card payment experience is undergoing a structural upgrade. Flipkart, in partnership with Axis Bank and PayU, has rolled out biometric authentication for card transactions, allowing users to approve payments using fingerprint or Face ID instead of OTPs. For users, this marks a shift from a network-dependent, SMS-based system to a device-based authentication model—faster, more reliable, and harder to compromise.
What changes for you as a user
The most immediate difference is at checkout. Instead of waiting for an OTP, users can now authenticate transactions instantly on their smartphone using biometrics. This eliminates common issues such as delayed messages, failed OTP delivery, or incorrect entries.
The feature is currently available for Axis Bank cardholders on Flipkart, where authentication is completed through a secure, device-bound process. Over time, similar integrations could expand across banks and merchants.
Why this is a big deal
OTP-based authentication has been the backbone of India’s digital payments, but it comes with friction and risks. Fraud methods like SIM-swap attacks and phishing have exposed vulnerabilities in SMS-based systems.
Biometric authentication addresses this by tying transactions to:
Your physical identity (fingerprint/face)
Your registered device (device binding)
This dual-layer security significantly reduces the chances of unauthorised access.
The move also aligns with the RBI’s push towards stronger, risk-based authentication mechanisms, especially as digital fraud has surged past ₹1,400 crore in FY2024.
Impact on speed and success rates
One of the biggest gains is transaction efficiency. OTP failures—especially during high-traffic sales—often lead to abandoned payments. With biometrics:
Approval is instant
Dependency on telecom networks is removed
Success rates improve, particularly in time-sensitive transactions
This could materially improve the checkout experience on large e-commerce platforms.
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Behind the scenes
The system works through a coordinated stack:
Flipkart enables the front-end payment experience
PayU manages merchant-side infrastructure and security layers
Axis Bank (via Wibmo) handles issuer-level biometric authentication
This ensures compliance with banking-grade security while keeping the process seamless for users.
What it means for the future of card payments
Biometric authentication could help card payments regain competitiveness against UPI, which has dominated due to its simplicity and speed. By reducing friction and enhancing security, cards may become more viable for everyday digital transactions.
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What's the takeaway for you
For users, the shift is straightforward but significant:
Fewer failed payments, faster checkouts, and stronger protection against fraud. As adoption scales, biometric authentication could redefine how India authorises card payments—moving from OTP dependency to secure, device-led verification.
Published on: Apr 28, 2026 1:31 PM IST
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