From Smart Glass Payments To Biometric Support: Here's How UPI Is Changing

Just likeevery year, the Indian fintech ecosystem saw a plethora of new launches on the opening day of the Global Fintech Festival (GFF) 2025.

RBI deputy governor T. Rabi Sankar and Department of Financial Services (DFS) secretary M. Nagaraju unveiled key digital payment innovations which bring support for new form factors and a focus on improving transaction security.

Some of these have been discussed in the past but this is the first that NPCI is announcing them. Let’s take a look at these features.

Small Value UPI Transactions Via Wearable Glasses

In what seems to be one of the most futuristic digital payment methods, now users can initiate small ticket UPI transactions on their wearable glasses. These transactions would be powered by UPI Lite.

For context, UPI Lite enables users to make small-value online transactions without internet connection and a PIN.

The payment process would see users complete a transaction hands-free by simply scanning a QR, authenticate and complete payments through voice on smart glasses, without needing a phone or entering a PIN.

In a statement, UPI operator National Payments Corporation of India (NPCI) said this is the first time that UPI has been extended to wearable devices. “This feature addresses customers’ growing demand for seamless, frictionless payments that integrate effortlessly into their always-connected, on-the-go digital lifestyle,” it said.

UPI Multi-Signatory

This feature allows a single UPI account to add multiple approvals (signatories) before a transaction can be processed. A user can initiate an UPI payment via any UPI or bank apps, while signatories can approve via any UPI or bank app.

The feature is primarily aimed at businesses where multiple people may need to authorise payments to ensure proper checks and balances.

On-Device Biometric Authentication For UPI

This feature allows users to authenticate their UPI payments via their smartphone’s built-in security options such as fingerprint or face unlock as an alternative to manually entering the UPI PIN.

DFS secretary Nagaraju said that the feature is designed to enhance the speed of digital payments by reducing the need for repeated PIN entries. To ensure safety, each transaction would be independently verified by the issuing bank using robust cryptographic checks.

Cash Withdrawal Through Micro ATMs Using UPI

With this feature, users can withdraw cash through micro ATMs at UPI cash points, which turn local shops and business correspondent outlets into cash withdrawal and deposit points for users.

Users can scan the dynamic QR code displayed by the BC outlet and authorise the transaction through their UPI app. The NPCI said that the launch of the feature adds to the existing UPI-enabled facilities for cash deposits and withdrawals through ATM.

Aadhaar-Based Face Authentication In UPI

The feature offers a new and secure way to set or reset their UPI PIN directly within UPI apps. Until now, creating a UPI PIN required entering debit card details or going through Aadhaar OTP verification. With Aadhaar-based face authentication for UPI PIN, onboarding will become faster, simpler, and more inclusive, especially for first-time users, senior citizens, and those without easy access to cards.

The solution leverages UIDAI’s FaceRD App for Aadhaar-based facial verification to eliminate entering debit card details or going through Aadhaar OTP verification while setting UPI PINs on apps.

Razorpay, in partnership with Yes Bank, announced a biometric card authentication system. The feature allows online card payments to be verified using facial recognition, marking a shift from the traditional two-factor authentication model that relied on PINs and SMS OTPs.

Forex On Bharat Connect

The NPCI also announced the linkage of FX Retail Platform with Bharat Connect, enabling retail banking customers to access foreign currency (USD) through their preferred payment or banking apps integrated with the Bharat Connect (BBPS) platform.

This integration allows individual customers of participating authorised dealer category-I, namely Axis Bank, Federal bank, ICICI Bank, State Bank of India and Yes Bank, to register, view ‘Best Price’ in real time, and complete purchase of US Dollars digitally.

Behind the new feature launches is the rapidly increasing UPI transactions in the country. Monthly UPI payments breached the 20 Bn mark in August but declined marginally to 19.6 Bn in September. PhonePe, Google Pay and Paytm lead the UPI ecosystem currently.

Besides NPCI’s announcements, fintech major Paytm launched its AI-powered payments soundbox which is said to provide real time insights and personalised answers based on the sales and income.

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