India-based Federal Bank has rolled out a biometric authentication feature for debit and credit card transactions carried out on ecommerce platforms.
In essence, the move allows customers to verify purchases using facial recognition or fingerprint scans. It’s worth noting that the solution was developed in partnership with fintech companies M2P and MinkasuPay.
The system, which replaces the traditional one-time password (OTP) method, is intended to reduce transaction times to approximately three to four seconds. According to the bank, the feature works across supported Android and iOS devices, and customers are able to enrol during the checkout process with a one-time consent.
Compliance and merchant adoption
The biometric system adheres to the Reserve Bank of India's two-factor authentication requirements and includes OTP fallback as a secondary option if biometric verification is unsuccessful. Federal Bank officials noted that the feature has already been made available for cardholders transacting with a limited set of partner merchants, with wider access planned in subsequent phases.
Officials from Federal Bank said the technology is designed to provide a more efficient alternative to existing verification methods without compromising on regulatory compliance. They also noted that merchants can incorporate the functionality through a lightweight software development kit.
A representative from the bank stated that this deployment reflects an evolving approach to digital banking interactions, where verification processes are intended to be both secure and less intrusive.
What else has Federal Bank been up to?
In March 2025, Federal Bank partnered with Kaleidofin to improve risk management. This collaboration aimed to help Federal Bank strengthen its risk assessment and management capabilities, specifically for its microfinance loan portfolio.
The partnership aligned with Federal Bank's ongoing efforts to drive financial inclusion and provide technology-driven solutions to meet the needs of a broader customer base. By leveraging ki view and the ki score, Federal Bank improved its ability to assess the financial health of microfinance customers during the onboarding process.
