**Razorpay, Yes Bank Launch India’s First Biometric Card Authentication System**
*By Akash Pandey | Oct 06, 2025, 06:02 PM*
Razorpay and Yes Bank have jointly launched India’s first biometric card authentication system, in compliance with the Reserve Bank of India (RBI) guidelines. This innovative system uses facial recognition technology to verify online card payments, replacing the traditional two-factor authentication methods that relied on PINs and SMS OTPs.
### Advanced Authentication with AI-Powered Security
The new Access Control Server (ACS) combines biometric verification with AI-powered risk assessment to authenticate transactions securely. This technology not only enhances security but also improves transaction efficiency by handling up to 10,000 transactions per second. By minimizing OTP-related errors, the system promises a smoother and faster payment experience for users.
### Aligning with RBI’s New Guidelines
This launch aligns with the RBI’s September 2025 guidelines, which call for stronger and smarter authentication mechanisms to enhance payment security and reduce transaction failures.
### Tackling Fraud and Transaction Failures
According to RBI data, OTP-related issues account for nearly 35% of transaction failures. Additionally, digital payment fraud in India resulted in losses exceeding ₹520 crore in FY25. Biometric authentication offers a secure alternative that is difficult to replicate or steal, directly addressing these challenges.
The system also enables real-time fraud monitoring and risk management without causing delays in online payments, thereby safeguarding users while maintaining convenience.
### Enhancing User Experience
Khilan Haria, Chief Product Officer at Razorpay, stated that the system was designed to strike a balance between security and user convenience, enabling faster and more reliable transaction approvals.
Anil Singh, Yes Bank’s Country Head for Credit Cards & Merchant Acquiring, highlighted that their partnership promotes safer digital payments and improved authentication success rates.
With this launch, Razorpay and Yes Bank are setting a new benchmark in India’s digital payment landscape, driving forward the future of secure and frictionless online transactions.
https://www.newsbytesapp.com/news/business/razorpay-yes-bank-launch-biometric-card-authentication-for-online-payments/story
