7 Interesting Points on Biometric Payments including AePS

Today, to authorize the payments you need a PIN or Password. Soon there would be a widespread system in which you yourself will be the password for authorization. This system has a term called Biometric Payments. Thus, our face, fingerprint, iris, etc biometrics are taking the place of the need to remember the PIN and Passwords.

biometric payment system in india

The biometric features are our unique physical and biological traits which can be identified and stored with the electronic instrument and authorized with the database. The biometric payments technology uses these biometric features to authenticate and ID the payer and authorize the transaction.

Let us now discuss the 7 points on Biometric Payments:

1. From emerging of Biometrics to its application into payments

In the subsequent part of the 20th century, the biometric system in the technological form advanced when the computer system rose. It gained momentum in the 1990s and entered the day-to-day operations at the beginning of the 2000s.

It gained attention when in 2013 Apple added fingerprint scanning in the smartphones. Before that in 2007, a mobile model of Toshiba also had added the fingerprint sensor system.

Before biometric technology was introduced to the consumers, its use was regulated to the security and law enforcement applications (in 2003).

50% of the smartphones have inbuilt fingerprint scanning today and by 2022 as per the prediction, it would be 98%.

The increased usage of mobile-based activities; and inclusion of the identification, authentication, and secure authorization methods in them through the fingerprint, face, and iris, the combination of these both have given the growth in the scope of the biometric fingerprint payment system.

2. Biometric Payment Cards

When the payment is made with the Biometric Payment Cards, you do not need a PIN. With this card, you can ID and authorize the transaction with your biometric for example, your fingerprint. When your fingerprint matches the saved one on the card, the payment is approved.

3. Benefits of Biometric Payments

Below are the points of benefits of the biometric authorization of the payments:

Security – This is an important point of concern and benefit; For the biometric fingerprint payment system, fingerprint scanning is done.

However, it is important to note that, it does not store the fingerprint image rather it is fed in a numerical way i.e. 0s and 1s. This means that the input is done in an encrypted manner and cannot be viewed or read or misused.

There will be no central database and the fingerprint will be stored in the card. The user identity remains safe even if the card is stolen or lost.

Quick – The payment can be authorized quickly.

Convenient – It can be set up easily with the biometric scanning device.

Simple – The input of the passwords is not required.

Accurate identification – Due to the accurate algorithms the payment authentication is accurate too.

Apart from the above benefits, VISA mentions that the hardware up-gradation would not be required as the biometric cards are compatible with the currently used contactless or chip-based payments device in the world.

4. Fingerprint Cards AB (Fingerprints™) and M-Tech Innovations Ltd collaboration.

World-leading biometrics company, Fingerprint Cards, and a leading smartcard manufacturer of India,  M-Tech, collaborate to launch contactless biometric payment cards in the Indian market.

5. Aadhaar Enabled Payment System (AePS)

Aadhaar is the world’s largest biometric ID system. It has collected the biometrics of more than 1 billion of the population.

Aadhaar Enabled Payment System (AePS) is a bank payment service for its customers. The bank customer can use Aadhar as his identity and access his Aadhar enabled bank account for the inter-bank and intra-bank services like:

  • Balance Enquiry
  • Aadhaar to Aadhaar Fund Transfer
  • Cash Withdrawal
  • Cash Deposit
  • BFD

Aadhaar Enabled Payment System (AePS) is a biometric payment system in India. It is easy to use and a secure platform because the use is based on the Aadhaar number and biometrics. It does not give scope for the fraud, due to the system based on the demographic and the biometrics of the person. It is reaching the unreached areas to facilitate the banking services as the bank branches could not be set up everywhere.

6. The summary of the “India Biometrics Market: Industry Trends, Share, Size, Growth, Opportunity and Forecast 2019-2024” report

In the last few years, there is a prominent growth in the biometrics market of India. This is due to its growing implementation by the government and private sectors. Also, the customers are using it to ID themselves and also to make the payments.

As per the report, the value of the Indian biometric market reached US$ 1.7 Billion in 2018. Further, by 2024 it is expected to reach US$ 3.8 Billion. The CAGR rate between 2019 to 2024 is expected at around 15%.

The government of India has introduced various applications using this technology like the Aadhar Card, AePS, e-Passport, RSBY (Rashtriya Swasthya Bima Yojna), Driving License, etc.

The other causes for the rise in the growth rate of the market are the increase in smartphone usage, the high quality of internet services, rise in the security concerns, etc.

7. NEWS about VISA and Mastercard biometric payment cards

In a Press Release on October 21, 2020, it was announced that Mastercard collaborating with a global leader in Augmented Identity, IDEMIA, and a fintech based in Singapore, MatchMove, pilots the biometric card in Asia. It uses a fingerprint to authorize transactions at in-store payment terminals. It enables fast, frictionless payment experiences and renders more choice and greater security for consumers.

VISA launched the pilot phase in the US for the chip and contactless biometric payment card with Mountain America Credit Union and Bank of Cyprus.


Already, you can see how biometrics have been introduced in our day-to-day lives when we unlock the smartphone, pick up a call, or log in to our mobile banking apps. Gradually it is getting popular in payment authorization as well. The biometric payment system in India is the future of payments along with the digital payment system which is already expanding.

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About the Author: PayKun