Posted by Mumbai: Federal Bank has announced a landmark move in digital banking by introducing India’s first biometric authentication system for e-commerce card transactions. In partnership with fintech firms M2P Fintech and MinkasuPay, the private sector bank now enables customers to authenticate online payments using fingerprint or face recognition, replacing the need for traditional OTPs.
The biometric solution speeds up transactions to just 3 to 4 seconds, boosting security and delivering a significantly smoother customer experience.
“This launch is more than a tech upgrade—it’s a transformation in how our customers experience banking. Biometric authentication makes secure payments feel natural and seamless,” said Virat Sunil Diwanji, National Head of Consumer Banking – Federal Bank.
‘At Federal Bank, our innovation always has a purpose—to empower customers with convenience and safety and with this partnership with M2P and MinkasuPay, we aim to set a national benchmark in frictionless digital transactions,” added Diwanji.
M2P Fintech, the infrastructure partner in this collaboration, highlighted the technological milestone achieved. Co-founder Madhusudanan R said the initiative reflects M2P’s focus on security and scalability.
“This collaboration is a perfect reflection of what M2P stands for—building secure, scalable infrastructure that elevates user experience,” said M2P Fintech Co-Founder Madhusudanan R.
“Enabling the country’s first biometric authentication for e-commerce card transactions is a proud milestone for us. In partnership with Federal Bank and MinkasuPay, we are not just innovating—we’re reimagining how trust and convenience can coexist in digital payments,” added Madhusudanan.
“We are proponents of device biometric authentication. Our goal is to offer the best and the most secure payment experience in the world while at the same time doing 2-factor authentication for all payment transactions,” said Anbu Gounder, CEO of MinkasuPay.
“We are pleased to partner with Federal Bank and M2P in bringing this cutting-edge technology to the market, thereby offering the best payment experience in the country to the Federal Bank card customers,” added Gounder.
The system adheres fully to the Reserve Bank of India’s two-factor authentication (2FA) guidelines. If biometric authentication is not available, the system defaults to OTP verification. Customers can opt in with a one-time consent at checkout and use the feature on compatible Android and iOS smartphones. Merchants can adopt the feature via a lightweight software development kit.
With this new biometric authentication system now Federal Bank customers will no longer require OTPs but will use fingerprint or facial recognition. It will lead to faster checkouts for transactions, enhanced security for each transaction with user’s device validation and full control with easy opt in or out along with traditional methods if needed.
This innovation is now live for Federal Bank debit and credit cardholders, across select partner merchants, and will be expanded in a phased manner.