Paytm has introduced two new features on its platform — biometric authentication for UPI payments and cardless ATM withdrawals. With biometric authentication, users can now verify transactions using Face ID or fingerprint instead of manually entering a UPI PIN. The cardless ATM withdrawal feature, meanwhile, allows users to withdraw cash without a physical ATM card, directly through the Paytm app.
Paytm’s latest update comes in the wake of the Reserve Bank of India’s new two-factor authentication rules, which came into effect on April 1. Under the new framework, users are now required to verify transactions using more than just a one-time password (OTP). It can be a PIN, password, secure token, or biometric authentication. The mandate applies to all forms of digital payments, including UPI, cards, and wallets.
Paytm confirmed that the biometric authentication feature works on both Android fingerprint sensors and Face ID on iOS. The company assured that no biometric data is stored or accessed by Paytm or the bank, ensuring user privacy and safety. In line with NPCI guidelines, biometric UPI payments will be capped at Rs 5,000 per transaction. The company also clarified that the UPI PIN option remains available for users who prefer the traditional method.
How to enable biometrics on Paytm
Enabling biometric authentication on Paytm is a straightforward process. Open the Paytm app and tap on the Profile icon on the left. From there, navigate to Settings and select either “Pay with Fingerprint” or “Pay with Face ID,” depending on your device. Next, select the bank account on which you want to enable biometric payments and follow the on-screen prompts to complete the authentication setup. Once done, you can verify UPI payments using your fingerprint or Face ID.
How cardless ATM withdrawals works
Paytm users can now withdraw cash from ATMs without a physical card. To use this feature, users simply need to have a bank account linked to their Paytm UPI. At a participating ATM, users can select the “UPI Cash Withdrawal” option, enter the desired amount, and scan the QR code that appears on the screen using the Paytm app. After verifying the UPI PIN, the ATM dispenses the cash and a confirmation appears instantly on the app. It is worth noting that the per-transaction withdrawal limit is capped at Rs 10,000.
