Passkey: A Biometric Authentication Solution by Razorpay

Razorpay, a leading omnichannel payments platform for businesses, has launched its RBI-compliant biometric authentication solution, named Passkey, in collaboration with Mastercard, and with plans to incorporate Visa shortly. This innovative solution is built on secure biometrics and payment passkey protocols that allow cardholders to authenticate online card transactions through biometrics like fingerprint or facial recognition. This innovation eliminates reliance on OTPs, resulting in a quicker, more secure, and reliable checkout experience.

In India, around 35% of payment failures are attributed to authentication issues, including delayed OTPs, incorrect entries, or redirection problems. Concurrently, digital payment fraud poses a substantial risk, with more than 13,500 internet fraud cases reported and losses surpassing Rs 520 crore in FY25, according to RBI statistics.

Razorpay’s biometric authentication solution is tailored for this shifting landscape. Utilizing device-bound secure biometrics and passkey protocols endorsed by Mastercard and Visa, authentication occurs directly on the user’s device via fingerprint or facial recognition. This advancement alleviates the need for OTP delivery, manual input, or redirections, ensuring a smooth and dependable payment experience.

By removing the friction tied to OTPs, the solution aims to enhance the security and fluidity of digital payments for customers while providing greater reliability and higher conversion rates for merchants. This approach is also designed to meet compliance standards and be future-ready for the entire ecosystem.

Unlike traditional OTP-based authentication, payment passkeys maintain tokenized card details that are inaccessible to merchants or any third parties, making stolen data ineffective for fraudulent activities. Customers can authenticate and complete high-value transactions using a fingerprint or facial scan, without any redirects or interruptions, leading to a more secure and seamless payment experience. This ultimately drives higher transaction success rates and improves customer outcomes on a large scale.

As the adoption of biometric authentication and payment passkeys grows, Razorpay aspires to define the next chapter of digital commerce in India, where payments are increasingly secure, reliable, and designed to operate swiftly in alignment with user intent.