Biometric UPI and Wearable Payments: A Technical Breakdown for Developers

Biometric UPI and Wearable Payments: A Technical Breakdown for Developers

The Global Fintech Festival (GFF) 2025 brought forth a plethora of digital payment innovations from the Department of Financial Services (DFS) and the Reserve Bank of India (RBI). These advancements, particularly in biometric UPI and wearable payments, aim to enhance speed, security, accessibility, and financial inclusion. This technical breakdown delves into the underlying mechanisms and implications for developers.

On-Device Biometric Authentication for UPI

DFS Secretary Shri M. Nagaraju, IAS, introduced On-Device Biometric Authentication for UPI, allowing users to authorize payments using smartphone security features such as fingerprint or face unlock. This feature is optional, providing users with control over their authentication method while maintaining robust security through cryptographic verification by issuing banks.

Key Technical Components:

1. Biometric Sensors: Modern smartphones are equipped with advanced biometric sensors (fingerprint, face recognition) that capture unique user data.
2. Cryptographic Verification: The biometric data is securely stored and verified using cryptographic algorithms to ensure data integrity and prevent unauthorized access.
3. UPI Integration: The UPI protocol is extended to support biometric authentication, ensuring seamless integration with existing payment apps.

Aadhaar-Based Face Authentication in UPI

The DFS also launched Aadhaar-based facial verification for setting or resetting UPI PINs. This innovation simplifies onboarding for first-time users, senior citizens, and those without easy access to debit cards. Using UIDAI’s FaceRD app, the process removes the need for OTPs or card-based verification, ensuring a secure and convenient experience.

Technical Insights:

• Facial Recognition**: The FaceRD app captures high-resolution images of the user's face and verifies it against the Aadhaar database.
• Data Security**: The facial data is encrypted and transmitted securely to prevent any data breaches.
• User Experience**: The process is streamlined, requiring minimal user interaction, making it user-friendly for all demographics.

Cash Withdrawal via Micro ATMs Using UPI

A new UPI-enabled cash withdrawal option was launched at Micro ATMs operated by Business Correspondents (BCs). Customers can scan a dynamic QR code and authorize transactions through their UPI app, complementing Aadhaar-based AePS and card-based withdrawals. This initiative aims to improve access to cash in underserved regions, supporting financial inclusion.

Technical Details:

• QR Code Generation**: BCs generate dynamic QR codes that are linked to the user's UPI ID.
• Transaction Authorization**: Users scan the QR code using their UPI app and authorize the transaction with a biometric or PIN-based authentication.
• Secure Transfer**: The transaction is processed through the UPI network, ensuring secure and swift cash withdrawal.

UPI Multi-Signatory

RBI Deputy Governor Shri T. Rabi Sankar announced UPI Multi-Signatory, allowing joint or multi-signatory accounts to authorize payments through any UPI or bank app. This feature ensures interoperability, faster approvals, and complete digital transparency, designed for corporates, MSMEs, start-ups, trusts, and joint account holders.

Technical Features:

• Multi-Signatory Support**: The UPI protocol is extended to support multi-signatory accounts, allowing multiple users to authorize transactions.
• Interoperability**: The feature ensures that payments can be authorized through any UPI or bank app, promoting seamless integration.
• Digital Transparency**: All transactions are recorded and accessible to all authorized users, enhancing accountability and trust.

Small Value Transactions Using Wearable Glasses via UPI Lite

RBI introduced UPI Lite integration with wearable glasses, enabling hands-free payments via voice authentication. Users can scan QR codes and complete transactions without a phone or PIN, intended for small-value, frequent payments in retail, food, and transit. This extension of UPI to wearable devices represents a step toward ambient payments, reducing core banking system load while improving user convenience.

Technical Innovations:

• Voice Authentication**: Advanced voice recognition technology ensures secure and convenient transactions.
• Wearable Integration**: The UPI Lite protocol is integrated with wearable glasses, enabling hands-free payments.
• QR Code Scanning**: Users can scan QR codes using the wearable device, completing transactions seamlessly.

Forex on Bharat Connect

The RBI launched Forex on Bharat Connect, linking the FX Retail Platform with Bharat BillPay. Customers can buy US Dollars digitally for currency notes, Forex card load, or outward remittance. Participating banks include Axis Bank, ICICI Bank, Federal Bank, State Bank of India, and Yes Bank. The integration provides transparent pricing, competitive rates, and faster processing.

Technical Highlights:

• Digital Integration**: The FX Retail Platform is integrated with Bharat BillPay, providing a seamless digital experience.
• Transparent Pricing**: Real-time exchange rates and competitive markups ensure transparency and fairness.
• Faster Processing**: The digital process eliminates the need for long queues and complex documentation, improving user satisfaction.

The Bottom Line

These innovations represent a significant leap in digital payment technology, offering enhanced security, accessibility, and financial inclusion. For developers, understanding the technical underpinnings of these features is crucial for building robust and user-friendly applications. By leveraging these advancements, the fintech ecosystem can drive greater efficiency and transparency, ultimately benefiting users and businesses alike.