Razorpay, Yes Bank launch India's first biometric card authentication system
What's the story
Razorpay and Yes Bank have launched India's first biometric card authentication system, in compliance with the Reserve Bank of India (RBI) guidelines. The innovative system uses facial recognition to verify online card payments, replacing the traditional two-factor authentication method that relied on PINs and SMS OTPs. The new Access Control Server (ACS) combines biometric verification with AI-powered risk checks for transaction authentication.
Transaction efficiency
It can handle up to 10,000 transactions per second
The new biometric authentication system can handle up to 10,000 transactions per second. It also minimizes OTP-related errors, promising a smoother payment experience for users. This launch is in line with RBI's September 2025 guidelines that call for stronger and smarter authentication mechanisms to enhance security and reduce payment failures.
Fraud prevention
Biometric authentication can help reduce transaction failures
OTP-related issues account for nearly 35% of transaction failures, while digital payment fraud in India caused losses of over ₹520 crore in FY25, as per RBI data. Biometric authentication seeks to tackle these problems by offering a secure alternative that's hard to replicate or steal. The system also enables real-time fraud monitoring and risk management without delaying online payments for users.
User experience
Statements from Razorpay and Yes Bank
Razorpay's Chief Product Officer Khilan Haria said the system was designed to balance security with user convenience, enabling faster and more reliable transaction approvals. Yes Bank's Country Head for Credit Cards & Merchant Acquiring, Anil Singh, emphasized that their partnership promotes safer digital payments and improved authentication success rates.