India-based Federal Bank has introduced a biometric authentication feature for debit and credit card transactions conducted through e-commerce platforms.
This advancement enables customers to verify their purchases using facial recognition or fingerprint scans. The bank developed this solution in collaboration with fintech firms M2P and MinkasuPay.
Replacing the conventional one-time password (OTP) method, the new system aims to significantly reduce transaction times to about three to four seconds. According to Federal Bank officials, the feature is compatible with both Android and iOS devices. Customers can enroll during the checkout process by giving a single-time consent.
Compliance and Merchant Adoption
The biometric system complies with the Reserve Bank of India’s two-factor authentication requirements, offering an OTP fallback option as a secondary measure if biometric verification fails. Federal Bank has rolled out this feature to selected cardholders transacting with partner merchants and plans to expand its reach in subsequent phases.
Bank officials highlighted that the technology provides a more efficient alternative to traditional verification methods without compromising regulatory compliance. Merchants can integrate this functionality through a light software development kit, according to Federal Bank representatives.
This deployment is seen as part of an evolving approach in digital banking, where verification processes are designed to be both secure and less intrusive.
Other Initiatives
In March 2025, Federal Bank teamed up with Kaleidofin to enhance risk management. This partnership was aimed at bolstering the bank’s risk assessment and management capabilities, particularly for its microfinance loan portfolio.
The collaboration supported Federal Bank’s efforts in driving financial inclusion by offering technology-driven solutions tailored to a broader customer base. By leveraging ki view and the ki score, Federal Bank improved its ability to evaluate the financial health of microfinance customers during the onboarding process.