Paytm has rolled out two new functionalities on its platform: biometric verification for UPI transactions and cardless ATM cash withdrawals. Users can now authenticate transactions using Face ID or fingerprint instead of entering a UPI PIN manually. Additionally, the cardless ATM withdrawal feature enables users to withdraw cash through the Paytm app without a physical ATM card.
This update from Paytm follows the implementation of the Reserve Bank of India’s recent two-factor authentication regulations on April 1. Under the new 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 requirements apply to all digital payment modes, including UPI, cards, and e-wallets.
Paytm has confirmed that the biometric authentication feature supports Android fingerprint sensors and Face ID on iOS devices. The company emphasized that neither Paytm nor the bank stores or accesses biometric data, ensuring user privacy and security. To comply with NPCI guidelines, biometric UPI payments are limited to Rs 5,000 per transaction. Users who prefer the traditional method can still use the UPI PIN option.
Enabling biometric authentication on Paytm is a simple process. Users can access this feature by opening the Paytm app, selecting the Profile icon, navigating to Settings, and choosing either “Pay with Fingerprint” or “Pay with Face ID.” After selecting the bank account, users can follow the on-screen instructions to set up biometric payments.
Regarding cardless ATM withdrawals, Paytm users can now withdraw cash without a physical card by linking their bank account to their Paytm UPI. At a participating ATM, users can select the “UPI Cash Withdrawal” option, enter the desired amount, scan the displayed QR code with the Paytm app, verify the UPI PIN, and receive the cash instantly. The withdrawal limit per transaction is capped at Rs 10,000.
The implementation of these new features by Paytm aims to enhance user convenience and security in digital transactions.