Razorpay has introduced a biometric authentication system for online card payments in collaboration with Yes Bank. The solution, developed shortly after the Reserve Bank of India issued new authentication guidelines in September 2025, aligns with regulatory requirements for stronger verification methods across digital transactions. The new Access Control Server enables cardholders to authenticate payments through fingerprint or facial recognition, offering an alternative to one-time passwords. This approach is designed to address the roughly 35% of payment failures linked to OTP delays or entry errors.
Biometric authentication under RBI’s new framework
RBI’s updated rules require domestic digital payments to use at least two factors of authentication, knowledge-based, possession-based (cards or tokens), and biometric identifiers. These standards shift responsibility to banks for failed safeguards and encourage more advanced, fraud-resistant mechanisms.
According to representatives from Razorpay, the biometric-ready ACS uses device tokenisation and passkey standards with an AI-driven risk engine to monitor transactions in real time. The system reportedly supports high processing volumes and aims to reduce transaction failures while maintaining regulatory compliance.
Officials from Yes Bank said the collaboration reflects efforts to enhance digital payment security and operational efficiency, noting that biometric verification offers customers faster and more reliable authentication.
Both companies said the system’s design reduces fraud exposure for banks, minimises customer drop-offs during checkout, and maintains consistency across devices. Merchants are expected to benefit from higher completion rates, while consumers gain a faster and more secure payment experience.
Other developments from Razorpay
In September 2025, Indian payment aggregator Razorpay launched Apple Pay for International Payments. With the integration, businesses that sell abroad gained the ability to offer global customers a familiar payment method directly on their Razorpay checkout.
The move aimed to decrease the number of cart abandonments due to the payment experience feeling untrustworthy by leveraging Apple’s 1-tap authentication using Face ID or Touch ID.
