Paytm has rolled out two new functionalities on its platform — biometric validation for UPI transactions and cardless cash withdrawals from ATMs. The biometric feature allows users to authenticate payments using Face ID or fingerprint instead of entering a UPI PIN manually. On the other hand, the cardless ATM withdrawal option enables users to withdraw cash directly through the Paytm app without the need for a physical ATM card.
This move by Paytm follows the implementation of new two-factor authentication regulations by the Reserve Bank of India starting April 1. Under the updated guidelines, users must authenticate transactions using methods beyond just a one-time password (OTP), such as a PIN, password, secure token, or biometric verification. These rules apply to all digital payment forms, including UPI, cards, and e-wallets.
Paytm has assured users that the biometric authentication feature is compatible with Android fingerprint sensors and iOS Face ID. The company emphasized that no biometric data is stored or accessed by either Paytm or the bank, ensuring the privacy and security of users. To comply with NPCI standards, biometric UPI transactions are limited to Rs 5,000 per transaction. Additionally, Paytm clarified that the traditional UPI PIN option remains available for users who prefer it.
To activate biometric authentication on Paytm, users can simply access the Profile section in the app, navigate to Settings, and choose either “Pay with Fingerprint” or “Pay with Face ID” based on their device. Users can then select the bank account for biometric payments and follow the on-screen instructions to complete the setup. Once configured, users can verify UPI transactions using their fingerprint or Face ID.
Regarding cardless ATM withdrawals, Paytm users can now withdraw cash without a physical card by linking their bank account to Paytm UPI. At participating ATMs, users can opt for “UPI Cash Withdrawal,” enter the desired amount, scan the displayed QR code using the Paytm app, validate the UPI PIN, and receive the cash from the ATM. A confirmation is instantly generated on the app. Notably, the withdrawal limit per transaction is capped at Rs 10,000.