Paytm rolls out biometric UPI payments and cardless ATM withdrawals

The new features align with RBI’s updated authentication norms, enabling secure transactions through fingerprint or Face ID, while also allowing users to withdraw cash without cards using UPI-enabled ATMs across India.

Paytm has introduced biometric authentication for UPI payments along with a cardless ATM withdrawal facility, expanding its digital payments capabilities in line with evolving regulatory and user security requirements.

The biometric feature allows users to authorise transactions using fingerprint or facial recognition instead of entering a UPI PIN. This enhancement is aimed at simplifying the payment experience while maintaining robust security standards. The feature is compatible with both Android devices equipped with fingerprint sensors and iPhones that support Face ID.

The rollout comes shortly after the Reserve Bank of India implemented updated two-factor authentication guidelines for digital transactions. Under the new framework, users must verify payments using at least two authentication factors, which can include PINs, passwords, tokens, or biometrics. The mandate applies across UPI, cards, and digital wallets, prompting platforms to adopt more secure and flexible authentication methods.

Enhancing security and user convenience

Paytm has emphasised that biometric data used for authentication remains securely stored on the user’s device and is not accessed or retained by the company or associated banks. This approach is intended to address privacy concerns while enabling faster and frictionless transactions.

In accordance with guidelines from the National Payments Corporation of India, biometric-based UPI payments are currently capped at ₹5,000 per transaction. Users who prefer traditional methods can continue to authenticate transactions using their UPI PIN.

The platform has also outlined a simple process for enabling biometric payments within the app. Users can activate the feature through the settings menu by selecting their preferred authentication method and linking it to their bank account.

Cardless cash withdrawals via UPI

In addition to biometric payments, Paytm has enabled cardless ATM withdrawals through UPI, offering users an alternative to physical debit cards. The feature allows customers to withdraw cash by scanning a QR code displayed on compatible ATMs.

To use this service, users must select the UPI cash withdrawal option at the ATM, enter the desired amount, and scan the generated QR code using the Paytm app. Once the transaction is authenticated—either through UPI PIN or biometric verification—the ATM dispenses the cash and confirms the transaction on the app.

The withdrawal limit is capped at ₹10,000 per transaction, although daily limits may vary depending on individual bank policies. This feature is expected to improve accessibility and convenience, particularly for users who prefer digital-first banking experiences.

With these updates, Paytm continues to strengthen its position in India’s digital payments ecosystem by combining enhanced security measures with user-friendly innovations.