Paytm Introduces Biometric UPI Payments and Cardless ATM Withdrawals
Digital payments in India are entering a new era of convenience and security. With the Reserve Bank of India’s updated security framework now in effect, Paytm has rolled out two features that eliminate the need for remembering UPI PINs or carrying physical ATM cards. Users can now authenticate transactions using their fingerprint or face ID, and withdraw cash from ATMs without a card by scanning a QR code. Here is how these features work and what they mean for everyday users.
Biometric UPI Payments: No More PINs for Small Transactions
The most significant change is the option to use biometric authentication for UPI payments. Instead of typing a PIN for every transaction, users can now verify payments using their fingerprint or facial recognition. This feature is designed for transactions up to ₹5,000 per payment, making it ideal for quick purchases at stores or peer-to-peer transfers.
To activate this, users need to go into the Paytm app settings and select the option to pay with fingerprint or Face ID. A linked bank account is required. Importantly, the biometric data never leaves the user’s device. Paytm and the associated bank do not store fingerprints or facial scans, ensuring privacy remains intact. The National Payments Corporation of India has set the ₹5,000 limit per transaction for biometric authentication, aligning with security protocols.
Cardless ATM Withdrawals: Cash Without the Card
Forgetting an ATM card at home is no longer a problem. Paytm now supports cardless cash withdrawals at UPI-enabled ATMs. The process is straightforward and requires only a smartphone with the Paytm app installed.
- At the ATM, select the UPI cash withdrawal option on the screen.
- Enter the amount you wish to withdraw and confirm.
- A QR code will appear on the ATM screen. Open the Paytm app and scan this code.
- The app will prompt you to enter your UPI PIN. Once entered, the ATM dispenses cash immediately.
This method allows withdrawals of up to ₹10,000 per transaction. It removes the dependency on physical cards and reduces the risk of card skimming or loss. Users can access cash from any ATM that supports UPI withdrawals, making it a flexible option for emergencies or travel.
RBI’s Two-Factor Authentication Mandate
These updates come in response to the RBI’s new two-factor authentication rules that took effect on April 1, 2026. The central bank now requires more than just an OTP for digital payments. Authentication must include at least two factors, such as a PIN, password, or biometric verification. Paytm’s biometric feature aligns with this requirement, offering a seamless way to meet security standards while improving user experience.
Security and Practical Considerations
Biometric authentication is not stored on external servers, which addresses common privacy concerns. For cardless withdrawals, the QR code is generated uniquely for each transaction and expires quickly, adding a layer of security. Users should ensure their device’s biometric sensors are properly configured to avoid failed attempts. While the ₹5,000 limit for biometric payments may seem restrictive, it covers the majority of daily retail transactions. Larger payments still require a standard UPI PIN entry.
These features are available immediately for Paytm users with updated app versions. No additional registration is needed beyond enabling the settings. As digital payment ecosystems evolve, such innovations aim to balance speed, convenience, and robust security for millions of users across the country.
