In a step aimed at making everyday digital payments faster and simpler, a major update has been rolled out to reduce reliance on PIN-based authentication for smaller transactions.
PhonePe has introduced biometric authentication for Unified Payments Interface (UPI) transactions, allowing users to approve payments of up to ₹5,000 using fingerprint or facial recognition instead of entering a UPI PIN. The company said the feature uses the smartphone’s native security systems to authenticate eligible transactions.
For payments above ₹5,000, users will continue to authenticate transactions using their UPI PIN, in line with existing regulatory requirements. PhonePe said the biometric option works as a device-level two-factor authentication mechanism for supported transactions.
The feature also includes a fallback option. Users can switch back to PIN-based authentication if biometric verification fails due to factors such as poor lighting conditions or sensor limitations. This ensures continuity of transactions without compromising security.
The biometric authentication rollout covers common use cases such as peer-to-peer transfers, QR code-based merchant payments, online transactions, and bank balance checks. The feature is currently available for Android users and supports both fingerprint and facial recognition. PhonePe said support for iOS devices is expected to be introduced at a later stage.
Deep Agrawal, Head of Payments at PhonePe, said the addition is designed to simplify the payment experience while maintaining existing security standards.
Founded in 2016, PhonePe operates across digital payments, merchant services, and financial distribution. As of September 30, 2025, the company reported more than 65 crore registered users and a merchant acceptance network spanning over 4.7 crore outlets across India.
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