Tag: fintech 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.

Finance

Bank of Baroda Wins Five Honours at IBA’s 21st Annual Banking Technology Awards 2025

Tanisha Cardozo

Written by Intern Rency Gomes, Team Allycaral

Bank of Baroda, one of India’s leading public sector banks, has received five awards at the Indian Banks’ Association’s 21st Annual Banking Technology Awards 2024–25, reaffirming its position as a frontrunner in technology-driven banking and innovation. The awards were announced in Mumbai on January 13, 2026.

The Bank emerged as the winner in four categories under the Large Banks segment, including Best AI and Machine Learning Adoption, Best Fintech and Digital Public Infrastructure Adoption, Best IT Risk Management, and Best Tech Talent. In addition to these category wins, Bank of Baroda also received a Special Mention in the Best Technology Bank category.

Commenting on the achievement, Debadatta Chand, Managing Director and Chief Executive Officer of Bank of Baroda, said the recognition reflects the Bank’s sustained focus on innovation, strong risk management practices, and the development of a skilled technology workforce. He noted that the Bank remains committed to investing in future-ready digital capabilities to deliver secure, seamless, and customer-centric banking experiences while creating long-term value for all stakeholders.

The awards further reinforce Bank of Baroda’s strategy of leveraging advanced digital solutions to improve operational efficiency and enhance customer service across channels. Over the years, the Bank has consistently prioritised technology-led transformation as a core pillar of its growth and service delivery model.

Founded in 1908, Bank of Baroda today serves more than 180 million customers globally through an extensive network of physical branches and digital banking platforms across multiple countries, offering a comprehensive range of banking products and financial services.

Finance

HDFC Bank Integrates Digital Rupee (e₹) into SmartGateway Payment Platform

Tanisha Cardozo

Written by Tanisha Cardozo || Team Allycaral

HDFC Bank has announced the integration of the Reserve Bank of India’s Central Bank Digital Currency, the Digital Rupee (e₹), into its online merchant payment platform, SmartGateway, marking a significant step in expanding India’s digital payments ecosystem. The move enables merchants to offer customers a secure, sovereign-backed digital payment option directly within the HDFC Bank checkout experience.

With this integration, merchants using SmartGateway can now accept payments through the Digital Rupee at zero transaction cost, in addition to existing payment modes such as UPI, cards, and net banking. The enhancement is designed to provide customers with a seamless payment experience that is instant, secure, and free of intermediary charges.

As of December 2025, HDFC Bank is among the pilot banks participating in the RBI’s CBDC initiative, servicing approximately 8.45 lakh registered Digital Rupee wallets. The bank continues to see steady adoption, with nearly 13,000 to 15,000 new wallets being added every month, reflecting growing consumer and merchant confidence in the emerging digital currency.

For merchants, zero-cost acceptance of CBDC presents a future-ready payment option that offers improved settlement certainty and reduced operational overheads by eliminating intermediaries. For consumers, the Digital Rupee combines the convenience and speed associated with UPI with the added trust and assurance of an RBI-backed sovereign digital currency, ensuring fast and secure transactions.

By enabling CBDC acceptance on SmartGateway, HDFC Bank is expanding the choice of digital payment options available to customers while extending the benefits of the Digital Rupee to a broader base of businesses. The initiative underscores the bank’s digital-first approach and its continued focus on innovation in the payments space.

This integration further reinforces HDFC Bank’s commitment to supporting India’s transition towards a cash-light, inclusive digital economy, while positioning SmartGateway as a comprehensive and future-ready payment platform aligned with the country’s evolving financial landscape.

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

Finance

UPI Market Share in July 2025: PhonePe Leads the Digital Payments Race

Tanisha Cardozo

India’s UPI (Unified Payments Interface) ecosystem continues to grow rapidly, and July 2025 data shows a clear winner emerging in the digital payments race.

According to the latest numbers, PhonePe has secured a commanding 46.7% share of the UPI transaction volume, reaffirming its position as India’s leading payments app. Google Pay remains a strong contender at 36.2%, while Paytm trails at 7.1%. The remaining 10% is split among smaller players in the ecosystem, including banks’ own UPI apps and emerging fintech platforms.

📌 Key Highlights:

  • PhonePe leads the market with seamless integration and broad merchant support.
  • Google Pay remains a preferred choice for many due to its clean interface and strong brand trust.
  • Paytm continues to hold relevance but faces stiff competition from the top two players.
  • The “Others” category—at 10%—includes apps like Amazon Pay, BHIM, CRED, and banking apps.

India’s digital payment space is increasingly consolidated, with PhonePe and Google Pay collectively holding over 80% of the market. This duopoly reflects consumer preferences for reliability, cashback incentives, and a smooth user experience.

As UPI adoption deepens across tier-2 and tier-3 cities, players that innovate on ease of use and ecosystem integration will continue to thrive.