Flipkart, Axis Bank and PayU Introduce Biometric Authentication for Card Payments

WHY THIS MATTERS

India’s digital payment ecosystem is currently moving away from its decade-long reliance on SMS-based One-Time Passwords (OTPs) toward a “biometric-first” model. Historically, OTPs were the gold standard for security, but they have increasingly become a liability due to the rise of SIM-swap scams and social engineering. This partnership matters because it scales device-bound authentication for Axis Bank’s millions of cardholders, effectively turning the smartphone itself into a secure, biometric key that is significantly harder for fraudsters to intercept.

The timing is critical as it aligns with the Reserve Bank of India’s (RBI) April 1, 2026, compliance deadline for its new “Authentication Mechanisms” directions. With card and internet fraud values crossing ₹1,400 crore in the last fiscal year, the shift to biometrics is no longer just about convenience; it is a regulatory mandate to improve transaction success rates and protect consumers. By integrating issuer-level verification via Wibmo (a PayU company), Flipkart is setting the institutional benchmark for how e-commerce platforms can comply with RBI’s vision for a more resilient and frictionless payment landscape.

Flipkart, India’s homegrown e-commerce marketplace, in collaboration with Axis Bank, one of the largest private sector banks in India and PayU, India’s leading diversified fintech platform, announced the launch of biometric authentication for card payments. Three trusted organizations have joined forces for this initiative, building on their shared history of a consumer first approach, and reinstating their collective commitment to the consumers of India. 

The initiative allows users to authenticate transactions using their fingerprint or Face ID on supporting Android and iOS devices, eliminating the need for a one-time password (OTP). The service is enabled first for Axis Bank cardholders through issuer‑level biometric verification. With this launch, Flipkart has become one of the leading major Indian e-commerce platforms to offer biometric authentication for card payments.  

The feature offers customers a more secure method of authentication backed by device fingerprinting and enhanced checks, reducing the risk of SIM‑swap or OTP‑based fraud. It addresses significant friction points in digital payments replacing SMS-based OTPs, with a faster and more secured mechanism already familiar to smartphone users. Under this collaboration, PayU manages the merchant-side infrastructure, including device security and authentication flows while Axis Bank leverages Wibmo (a PayU company) to power biometric verification on the issuer side. 

Biometric authentication addresses India’s alarming digital payment fraud landscape, where fraud values surged more than fivefold to exceed ₹1,400 crore in FY 2024, according to RBI-linked data. In response, the Reserve Bank of India issued the ‘Authentication Mechanisms for Digital Payment Transactions Directions, 2025‘ circular, explicitly encouraging adoption of biometric and risk-based authentication over SMS OTPs. Strategically aligned with this regulatory vision, the Flipkart-PayU-Axis Bank partnership enhances security, improves transaction success rates, and creates a more resilient payment ecosystem while fulfilling RBI’s mandate for stronger digital authentication mechanisms.  

Commenting on the collaboration, Hemang Dattani, Chief Business Officer, PayU Payments, said, “As digital commerce continues to scale in India, simplifying payments without compromising on security is critical. At PayU, we are proud to partner with Flipkart to enable a biometric authentication experience for card payments, helping customers move past long-standing friction associated with OTP-based verification. By combining biometric authentication with enhanced security controls, this partnership marks a meaningful step towards building a faster, more secure and frictionless digital payments experience for Indian consumers.”  

Speaking on the launch, Gaurav Arora, Vice President, Payments and SuperCoins at Flipkart, said, “At Flipkart, our approach to innovation is anchored around robust compliance and consumer trust. The integration of the biometric authentication feature reflects our commitment to building safety into consumer payments at a time when digital fraud risks are becoming increasingly sophisticated. By leveraging secure biometric credentials, we are delivering a payment experience that is intuitive and seamless, while meeting the highest standards of consumer protection. As digital commerce continues to scale, our focus remains on enabling faster transactions while reinforcing the regulatory rigour and ecosystem-wide trust that secure payments demand.”

Arnika Dixit, President & Head – Cards, Payments and Wealth Management, Axis Bank, said, “At Axis Bank, we are constantly working to reinforce trust and security across every digital touchpoint. Customers today expect digital payments to be not only safe but effortless, and biometric authentication delivers exactly that by enabling a secure, onetouch approval experience. We are delighted to introduce this enhanced capability for our cardholders through our collaboration with Flipkart and PayU. This rollout reflects the strength of our long standing partnership and our shared commitment to elevating industry standards in both security and customer experience. As digital commerce continues to evolve, we remain focused on bringing innovations that make payments simpler, stronger and future ready for our customers.”

This rollout marks a step forward in India’s transition away from OTPs, offering users a smoother way to pay while maintaining high standards of compliance and control. Through this collaboration, Flipkart, Axis Bank and PayU are establishing a strong model for a device‑bound biometric card authentication that can support the next generation of secure digital transactions in India.

FF NEWS TAKE

The collaboration between Flipkart, Axis Bank, and PayU is a definitive strike against the “OTP friction” that has historically plagued Indian e-commerce. While India processes over 80 crore transactions daily, the failure rate associated with delayed or undelivered SMS codes remains a significant pain point for merchants. By shifting to Face ID and fingerprint authentication, Flipkart isn’t just improving security; it is streamlining the final “buy” button into a one-touch experience that mirrors the seamlessness of global giants like Apple or Amazon, but tailored for India’s unique regulatory environment.

However, the transition to a biometric-only world presents new challenges regarding device inclusivity and data privacy. While most modern smartphones support biometrics, the “digital divide” still exists for users on older hardware who may still rely on traditional legacy methods. Furthermore, as the industry moves toward “risk-based authentication,” the burden of proof shifts to the issuer’s AI models to accurately distinguish between a legitimate biometric scan and an unauthorized attempt. Success for this alliance will be measured by whether it can maintain its 90% plus transaction success rates while ensuring that biometric data remains securely stored within the device’s hardware enclave, satisfying India’s strict new data protection standards.