Razorpay has launched what it says is India’s first RBI-compliant biometric-ready Entry Management Server (ACS) for card authentication, developed in partnership with YES Financial institution.
The answer replaces one-time passwords (OTPs) with fingerprint and face ID verification for on-line card funds.
The launch follows the Reserve Financial institution of India’s September 2025 round mandating stronger two-factor authentication for home digital transactions.
Underneath the framework, banks are absolutely answerable for losses if safeguards fail, driving a shift from OTP-only strategies to safer choices equivalent to gadget tokens and biometrics.
Razorpay’s ACS makes use of gadget tokenization and passkey requirements to allow biometric verification and goals to cut back OTP-related errors that account for about 35% of failed transactions.
Its AI-powered threat engine conducts real-time fraud checks to enhance success charges and supply smoother checkouts.
YES Financial institution, which co-developed the system, mentioned early outcomes present improved authentication success and as much as 75% fewer drop-offs, aided by on the spot card controls and affordability choices constructed into the checkout expertise.
The partnership is anticipated to assist issuers lower fraud threat and failed transactions whereas providing retailers a extra dependable and user-friendly cost movement.
Khilan Haria, CPO, Razorpay, mentioned,
“Following the RBI’s ultimate pointers, we’re proud to pioneer and co-create the way forward for card authentication in India. With Razorpay ACS, we’re shaping how biometrics will work seamlessly throughout each card issuer and service provider within the nation.
This isn’t nearly fixing at the moment’s OTP delays or fraud dangers, it’s about constructing the following decade of digital belief, the place authentication turns into invisible, intuitive, and growth-focused for companies, whereas being easy and safe for purchasers.”
Anil Singh, Nation Head, Credit score Playing cards & Service provider Buying, YES BANK, mentioned,
“At YES BANK, we’re delighted with the efficiency of Razorpay ACS, which we now have co-created in partnership with Razorpay. We stay dedicated to delivering safe, seamless, and future-ready cost experiences to our prospects.
The excessive authentication success charges and real-time fraud prevention delivered by Razorpay ACS are being broadly acknowledged by our prospects, additional strengthening their belief and reinforcing our imaginative and prescient of enabling safer, smarter, and extra intuitive digital funds at scale.”