No OTPs: Federal Bank enables fingerprint, Face ID for online payments

Indian private sector bank Federal Bank recently partnered with fintech startups M2P and MinkasuPay to introduce what it calls India’s first-ever biometric authentication solution for e-commerce card transactions.

The bank said customers can now authenticate online purchases through fingerprint or Face ID. It said the solution enhances security while significantly improving transaction speed and user experience.

The solution replaces cumbersome OTPs with biometric verification, reducing transaction times to just 3–4 seconds, while enhancing security. The solution is designed to combine simplicity with security, offering users a seamless experience, the release notes.

“This launch is more than a tech upgrade—it’s a transformation in how our customers experience banking. Biometric authentication makes secure payments feel natural and seamless. At Federal Bank, our innovation always has a purpose—to empower customers with convenience and safety and with this partnership with M2P and MinkasuPay, we aim to set a national benchmark in frictionless digital transactions,” said Virat Sunil Diwanji, National Head – Consumer Banking, Federal Bank. 

Madhusudanan R, Co-founder, M2P Fintech, said:  "This collaboration is a perfect reflection of what M2P stands for—building secure, scalable infrastructure that elevates user experience. Enabling the country’s first biometric authentication for e-commerce card transactions is a proud milestone for us. In partnership with Federal Bank and MinkasuPay, we are not just innovating—we’re reimagining how trust and convenience can coexist in digital payments."

"We are proponents of device biometric authentication. Our goal is to offer the best and the most secure payment experience in the world while at the same time doing 2-factor authentication for all payment transactions," said Anbu Gounder, CEO of MinkasuPay. 

The biometric solution is fully compliant with the Reserve Bank of India’s two-factor authentication guidelines and includes a fallback to one-time passwords when biometrics are not captured.

Customers can enroll with a one-time consent during checkout and use the feature seamlessly on supported merchant apps. It is compatible with Android and iOS smartphones and can be integrated by merchants through a lightweight software development kit.

For customers, this means no more OTPs, just a fingerprint or Face ID for authentication; checkout times as quick as three seconds; enhanced security with each transaction uniquely validated by the device; and full control, with the option to opt in or out and revert to traditional methods when needed.

The feature is now live for Federal Bank debit and credit cardholders across select partner merchants and will be rolled out more broadly in phases.