Tag: digital payments India

TechPulse

PhonePe Launches Biometric Authentication for UPI Payments

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Written by Intern Rency Gomes || Team Allycaral 

PhonePe has announced the rollout of biometric authentication for UPI payments, offering users a faster and more seamless ‘one-touch’ payment experience. The feature enables customers to authorise transactions using their smartphone’s native security — such as fingerprint or facial recognition — eliminating the need to manually enter a UPI PIN for eligible transactions.


With this launch, PhonePe becomes one of the first major digital payments platforms in India to introduce biometric-based authentication at scale.

Secure & Seamless Transactions

The feature is designed to enhance both security and convenience in the digital payment journey. By leveraging device-level biometric verification, users can transact securely even in crowded public spaces, reducing risks such as PIN exposure or “shoulder-surfing.”

In addition to improving security, biometric authentication is expected to increase transaction success rates by minimising failures caused by forgotten or incorrectly entered UPI PINs. A seamless fallback mechanism is built into the system, allowing users to instantly switch back to their UPI PIN in case biometric authentication is affected by issues like poor lighting or sensor limitations.

Regulatory Compliance & Usage

In accordance with regulatory guidelines, biometric authentication will function as a secure two-factor authentication layer for UPI transactions up to ₹5,000. Transactions exceeding this limit will continue to require standard UPI PIN verification.

Users can access biometric payments across multiple use cases, including peer-to-peer transfers, in-store QR payments, online transactions, and even checking bank balances.

Deep Agrawal, Head of Payments at PhonePe, stated that the integration marks a significant step toward making digital payments more intuitive and secure for Indian consumers, while adding an extra layer of hardware-grade security.

How to Enable Biometric Payments
Users can activate the feature by following these steps:
Open the PhonePe app
Go to Profile
Tap on Manage Payments
Select the Biometric Pay option
Enable Biometric Authentication for UPI Payments for respective bank accounts
Confirm using UPI PIN and biometric authentication for one-time setup
The feature is currently available for Android users, supporting both fingerprint and facial recognition. iOS support is expected to roll out soon.

TechPulse

10 Years of PhonePe: A Decade of Building for Bharat

Tanisha Cardozo

Written by Tanisha Cardozo || Team Allycaral

PhonePe recently marked a significant milestone, completing ten years in India’s fintech ecosystem and celebrating a decade of innovation, growth and impact. Since its inception, the company has played a pivotal role in transforming the way India transacts and manages money, steadily expanding financial access across urban and rural Bharat alike.

In 2025, PhonePe crossed a major milestone by surpassing 600 million registered users, reinforcing its position as a cornerstone of India’s digital economy. The year focused strongly on deepening trust and improving accessibility with the introduction of features such as UPI Circle, which enables delegated payments for trusted contacts, and PhonePe Protect, a robust security framework designed to safeguard users against fraudulent transactions.

Strengthening its support for merchants, PhonePe introduced Made-in-India solutions like the SmartSpeaker and SmartPOD, helping small and medium businesses embrace digital payments with ease. Through the Udyam Assist initiative, launched in partnership with SIDBI, PhonePe became one of the first institutions to enable digital-first integration for MSMEs, streamlining their access to formal credit and financial services.

For consumers, the platform expanded beyond payments by launching affordable protection products such as Home Insurance and Health Insurance, aimed at India’s “Missing Middle.” PhonePe also unlocked liquidity through innovative lending solutions, including Loan Against Mutual Funds, ensuring essential financial services are accessible to a wider population.

Reflecting on the journey, Sameer Nigam, Founder and CEO of PhonePe, said that despite how far the company has come, the most exciting part is that the summit is still not in sight. He highlighted the passion of the teams behind PhonePe and noted that the journey continues to be meaningful and energising as the company builds for the future.

Rahul Chari, Founder and CTO, expressed pride in what PhonePe has built over the past decade, acknowledging the goodwill and support received from the industry and the wider ecosystem. He emphasised that building something people truly believe in is what turns an idea into real impact.

Over the years, PhonePe has consistently redefined the Indian fintech landscape through industry-first innovations. From Digital Gold and Mutual Funds to making Insurance and Stock Broking accessible to the masses, the platform has evolved into a comprehensive financial ecosystem. Key milestones include the PhonePe Business app for merchants, Merchant Lending, Credit Line on UPI, Cross-Border UPI, UPI Lite, and the 2024 launch of the Indus Appstore, Share.Market and secured lending platforms.

By relocating its domicile to India in 2022 and steadily expanding into credit and wealth management, PhonePe has moved beyond being a payments utility to becoming an integral part of India’s financial fabric, ensuring that access to protection, investment and credit continues to reach every citizen as it builds for Bharat.

Business

UPI Crosses 20 Billion Monthly Transactions for the First Time in August 2025

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National | September 1, 2025

India’s Unified Payments Interface (UPI) has achieved a historic milestone by crossing 20 billion transactions in a single month for the first time in August 2025. This record underscores the country’s growing digital payments ecosystem and its leadership in fintech innovation.

According to the National Payments Corporation of India (NPCI), the surge was driven by increased adoption of digital payments across urban and rural markets, integration of UPI into global platforms, and rising trust in India’s cashless economy.

🔑 Key Drivers of Growth:

  • 📲 Widespread smartphone penetration and internet access.
  • 🛍️ Increasing use of UPI for retail, e-commerce, and utility payments.
  • 🌍 Expansion of UPI’s global footprint, enabling cross-border transactions.
  • 💳 Rising preference for instant, secure, and low-cost payments.

Over the past few years, UPI has become a cornerstone of India’s digital economy. From street vendors to large corporations, its adoption reflects inclusivity and convenience.

What This Means for India
Industry experts suggest this milestone not only cements UPI’s role as a national payments backbone but also strengthens India’s global positioning in digital finance. With ongoing innovations like UPI Lite, Credit on UPI, and international collaborations, transaction volumes are expected to rise further in the coming years.

Looking Ahead
As India accelerates toward a cashless future, UPI’s exponential growth signals a shift in consumer behavior and financial accessibility. The 20-billion mark is more than a statistic—it’s a testament to the success of India’s digital economy vision.

📖 Stay updated on fintech and innovation stories at allycaral.com

Business

UPI Transactions to Become Faster from June 16, 2025

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New Delhi, June 16, 2025 – The National Payments Corporation of India (NPCI) has announced significant improvements to the Unified Payments Interface (UPI) system, aiming to enhance transaction speeds and user experience. Effective today, UPI transactions will witness a substantial reduction in response times, benefiting users and payment service providers alike.

⏱️ Reduced Response Times

In a move to streamline the payment process, NPCI has decreased the response time for various UPI transaction stages:

  • Request and Response Transactions: The time has been reduced from 30 seconds to 10 seconds.
  • Valid Address Transactions: The time has been cut from 15 seconds to 10 seconds.

These changes are expected to make UPI transactions faster and more efficient, enhancing the overall user experience.

📱 Impact on Payment Service Providers

Major payment platforms such as Google Pay, PhonePe, and Paytm are set to benefit from these improvements. With reduced response times, these platforms can process transactions more swiftly, leading to quicker payment confirmations and enhanced user satisfaction.

🔐 Enhanced User Experience

To further improve the user experience, NPCI has introduced the following measures:

  • Increased Balance Check Attempts: Users can now check their account balance up to 50 times per day.
  • Account-Related Searches: Users can perform up to 25 account-related searches daily.
  • Mandate Attempts: Each mandate will have one attempt, with three additional retries allowed in case of failure.

These enhancements aim to provide users with more flexibility and convenience when using UPI services.

📆 Looking Ahead

As UPI continues to evolve, NPCI remains committed to improving the digital payment ecosystem in India. The recent changes are part of ongoing efforts to ensure that UPI remains a reliable, secure, and user-friendly platform for all users