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Federal Bank Introduces India’s First Biometric Verification System for Online Card Payments.

Banking & Finance | Dated: 26 Jul 2025

On 25 July 2025, Federal Bank introduced a groundbreaking innovation in digital payments by launching India’s first biometric authentication feature for e-commerce card transactions. The initiative aims to enhance transaction security and reduce fraud in online shopping, aligning with India’s push for secure digital transformation.

🎯 Key Highlights:

  • - Federal Bank has become the first Indian bank to implement biometric authentication for card-not-present (CNP) transactions in the e-commerce space.
  • - This system utilizes fingerprint biometrics to authorize online card payments, offering a frictionless and secure alternative to traditional OTP (One-Time Password)-based systems.
  • - The biometric authentication system is powered by cutting-edge infrastructure compliant with the Reserve Bank of India’s (RBI) data protection guidelines. It leverages the Aadhaar-based fingerprint system and ensures end-to-end encryption during card verification to prevent data theft and unauthorized access during digital transactions.

💡 Other Important Facts:

  • (i) The bank initially rolled out this feature for select users across major metro cities and aims to expand its availability nationwide within the next quarter. Customers can enable this feature via the FedMobile app or through their nearest branch, integrating seamlessly with Visa and Mastercard networks.
  • (ii) The biometric e-commerce security project is part of Federal Bank’s broader digital transformation strategy. It aligns with the government’s “Digital India” mission and supports the national fintech ecosystem by pioneering secure, user-friendly innovations that improve customer trust and financial inclusion.

📚 Test Your Knowledge:

Which bank recently became the first in India to launch biometric authentication for e-commerce card transactions?

Correct Answer: Federal Bank

🚀 Quick Recap:

About Federal Bank

  • CEO: KVS Manian
  • Headquarters: Aluva