{"id":24221,"date":"2025-10-06T00:16:52","date_gmt":"2025-10-05T18:46:52","guid":{"rendered":"https:\/\/blog.razorpay.in\/blog\/?p=24221"},"modified":"2025-10-06T12:26:08","modified_gmt":"2025-10-06T06:56:08","slug":"razorpay-acs-pioneering-rbi-compliant-biometric-card-authentication-in-india","status":"publish","type":"post","link":"https:\/\/razorpay.com\/blog\/razorpay-acs-pioneering-rbi-compliant-biometric-card-authentication-in-india\/","title":{"rendered":"Razorpay Unveils India\u2019s First RBI-Compliant Biometric Authentication for Payments with YES BANK"},"content":{"rendered":"

India\u2019s digital payments ecosystem is evolving at a rapid pace. Businesses, banks, and consumers are embracing online transactions more than ever, but with growth comes complexity. Despite the convenience of card payments, <\/span>nearly 35% of transactions fail due to OTP delays, incorrect entries, or redirection issues<\/b>. Coupled with rising digital fraud and stricter regulatory requirements, the need for smarter, faster, and more secure authentication has never been greater.<\/span><\/p>\n

Why Authentication Matters<\/strong><\/h2>\n

\"\"<\/span><\/p>\n

Every online card payment starts with one moment of truth: authentication. It\u2019s the first step in building trust. <\/span>For businesses, authentication means confirming that the person making the payment is really who they say they are. And this is why it is important. It is the first step to a safe and secure transaction. It is the basic building block of trust in digital payments. Thanks to robust authentication,<\/span><\/p>\n

– a<\/span> cardholder<\/b> trusts that their funds are safe <\/span>
\n<\/span>– a<\/span> merchant<\/b> trusts that the transaction will result in real payment<\/span>
\n<\/span>– and <\/span>for <\/span>banks<\/b>, it\u2019s protection against fraud, liability, and regulatory risk<\/span><\/p>\n

For years, OTP-only authentication has been the industry standard, but it has limitations like delayed SMS, failed OTPs, and cumbersome checkout flows that frustrate customers and lead to lost sales for businesses. Additionally, traditional methods struggle to keep pace with the evolving threats of fraud.\u00a0<\/span><\/p>\n

Why This Matters Now<\/strong><\/h2>\n

RBI Ushers in the Future of Card Authentication<\/b><\/h3>\n

RBI\u2019s 2025 guidelines<\/span><\/a> mandate stronger authentication and make banks fully liable if safeguards fail. OTP-only flows are no longer enough in a world of high-value transactions and rising fraud risk. RBI\u2019s new framework mandates <\/span>two-factor authentication<\/b>, encouraging the move beyond OTP dominance towards more secure, harder-to-fake methods like device tokens and biometrics.<\/span>
\n<\/span><\/p>\n

Two-Factor Authentication: <\/b>Every domestic digital payment must be verified using at least two distinct factors of authentication, according to the RBI. These could come from:<\/span><\/p>\n

    \n
  1. Something you know<\/b>: Password, PIN, or passphrase<\/span><\/li>\n
  2. Something you have<\/b>: A card, token, or SMS-based one-time password (OTP)<\/span><\/li>\n
  3. Something you are:<\/b> Biometric data, such as a fingerprint or facial recognition<\/span><\/li>\n<\/ol>\n

    With the RBI\u2019s new circular, the industry received the backing for advanced tech solutions to boost digital security and authentication. And it\u2019s exactly what Razorpay ACS is built for.<\/span><\/p>\n

    Enter Razorpay ACS: India\u2019s First Biometric Card Authentication for Payments<\/strong><\/h2>\n

    Razorpay ACS goes beyond traditional authentication. <\/span>Within just few days of RBI\u2019s September 2025 circular,<\/b> Razorpay<\/a> has introduced India\u2019s first biometric-ready Access Control Server (ACS) in partnership with Yes Bank,<\/strong> an innovation that puts fingerprint and face ID scan at the heart of every online transaction. \"\"<\/span><\/p>\n

    1. Razorpay Biometric Authentication<\/b><\/h3>\n

    Built on device tokenization and advanced passkey standards, Razorpay ACS transforms card payments with seamless fingerprint and face ID authentication, delivering secure, one-click checkouts and reducing approximately 35% of OTP authentication errors.<\/span>
    \n<\/span><\/p>\n

    2. AI-Powered Risk Engine<\/b><\/h3>\n

    With AI-powered risk checks, it <\/span>keeps payments secure in real time<\/b>, while <\/span>ensuring smooth checkouts for users<\/b>, <\/span>fewer authentication failures for banks<\/b>, and <\/span>higher conversions for businesses<\/b>.<\/span>
    \n<\/span><\/p>\n

    3. Conversion-Focused Checkout Page<\/b><\/h3>\n

    The authentication page is reimagined with instant card controls, EMI options, and rewards – turning friction into delight. <\/span>Banks are witnessing <\/span>75% fewer drop-offs,<\/b> thanks to instant card control activations, affordability options, and rewards now built right in, <\/span>and banks running more efficiently with <\/span>faster integrations and lower costs.<\/b><\/p>\n

    4. Built to Scale<\/h3>\n

    Powers 10,000 TPS and delivers the highest success rate.\"\"<\/span><\/b><\/p>\n

    What it means for:\u00a0<\/strong><\/h2>\n

    Banks<\/strong><\/h3>\n