Federal Bank launches biometric ecom payments

By Express Computer On Jul 24, 2025

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In a landmark step toward redefining digital payment security and user convenience, Federal Bank has unveiled India’s first-ever biometric authentication solution for e-commerce card transactions. Launched in partnership with fintech innovators M2P Fintech and MinkasuPay, this solution allows customers to validate online purchases using their Fingerprint or Face ID—making payments faster, more secure, and remarkably seamless.

A New Era in Digital Payments

Traditional online transactions in India have long relied on OTPs (One-Time Passwords), which while secure, often create friction due to delays or delivery failures. Federal Bank’s new biometric system changes this equation by eliminating OTPs altogether and introducing biometric-based Two-Factor Authentication (2FA)—a first for the country’s e-commerce ecosystem.

“This launch is more than a tech upgrade—it’s a transformation in how our customers experience banking,” said Virat Sunil Diwanji, National Head – Consumer Banking at Federal Bank. “Biometric authentication makes secure payments feel natural and seamless.”

What Makes This Revolutionary?

The biometric solution dramatically reduces transaction time from around 30 seconds (with OTP) to just 3–4 seconds. Here’s how it benefits customers:

No more OTPs – Just a touch or a glance using your device’s built-in biometrics.

Lightning-fast checkouts – Experience near-instantaneous payments.

Enhanced security – Each transaction is cryptographically bound to the user’s unique biometric data.

User-first design – Opt-in and out easily, with traditional OTPs as fallback options.

The solution currently works on compatible Android and iOS smartphones and can be integrated by merchants through a lightweight SDK, ensuring minimal technical overhead and a wide implementation scope.

A Fintech-Driven Collaboration

The launch is the result of a strategic alliance between Federal Bank and two rising stars of India’s fintech space: M2P Fintech and MinkasuPay.

“We are not just innovating—we’re reimagining how trust and convenience can coexist in digital payments,” remarked Madhusudanan R, Co-founder of M2P Fintech.

Anbu Gounder, CEO of MinkasuPay, added, “Our goal is to offer the best and the most secure payment experience in the world while doing two-factor authentication for all payment transactions.”

MinkasuPay’s biometric technology—already compliant with RBI’s 2FA mandates—ensures that the solution meets regulatory requirements while offering a smoother user journey.

Live Now—With Plans to Scale

The feature is currently available for Federal Bank debit and credit cardholders through select partner merchants, with broader rollout expected soon. Customers can enroll with a one-time consent during checkout and use the feature without needing any separate app or setup.