Card Payments are entering a whole new era – one that will make OTPs a relic of the past.
And honestly, there’s a good reason for that.
OTP-based authentication adds friction to what should be a simple payment experience. Redirects to bank pages, waiting for messages to arrive, typing codes under time pressure – it interrupts the flow of what should be a quick, seamless transaction.
Not just this.
When OTPs were introduced, they added an important safety layer to authenticate card payments. But today, as fraud techniques grow more sophisticated, attackers are increasingly targeting authentication itself – using phishing, social engineering, SIM-swap attacks, and other methods to trick users into revealing their OTPs.
RBI agrees too.
In its 2025 Authentication Directions, the Reserve Bank of India has signaled a shift away from relying solely on SMS-based OTPs for payments.
Payments are meant to be fast and effortless. As expectations evolve, it’s becoming clear that authentication methods must evolve too
Enter Passkeys – Authentication, Reimagined
Passkeys may already feel familiar – especially if you’ve used them to sign into services like Gmail. Instead of typing passwords, passkeys let you prove it’s really you with a quick biometric confirmation.
That same passkey technology is now reshaping how card payments are authenticated.
Imagine your customer trying to complete a purchase during a peak sale hour. They’re in a hurry – and every extra step increases the risk of abandonment. Waiting for an OTP, enduring redirections, and typing codes interrupts what should be a seamless checkout experience.
With passkeys, that friction disappears.
Your customer selects their saved card, confirms with a fingerprint or face scan, and the payment is completed – often in just seconds. No redirects. No waiting. No drop-off moments.
This is what passkey-powered authentication enables: faster checkout experiences that keep customers in the flow and help merchants capture intent at the moment it matters most.
Behind the scenes, payment passkeys are created when a customer enrolls their card for passkey authentication within your app or website.During this enrollment, the customer’s device generates a secure credential using global FIDO security standards – supported by card networks like Mastercard. This credential is securely bound to the card and the customer’s device.
During the authentication step in card payments – the moment identity must be verified – OTP SMS-based verification traditionally adds friction, delay and security risks. With payment passkeys, customers authenticate instantly using biometrics, allowing their device to securely use the passkey and complete the transaction.
The result is what merchants want most: faster approvals, smoother checkout, and truly one-touch card payments. And it is what customers value the most – convenience like never before.
What Does This Shift Mean for Your Business?
10% Higher Success Rates on Card Payments
Biometric authentication eliminates all OTP related failure points. This alone can boost your success rates by up to 10%
50% lower Fraud Rates
Because passkey authentication doesn’t rely on shared secrets or SMS OTPs, verification happens securely on the user’s device. This greatly reduces opportunities for interception and phishing – helping lower fraud risk.
5X Faster Payments
Biometric authentication is faster and reduces friction at checkout compared to the traditional OTP based flow. This means lower abandonment rates and higher revenue.
Enabling Biometric Authentication for Card Payments with Cashfree
Card authentication is evolving – and merchants who move early stand to benefit the most. Passkey-powered biometric authentication isn’t just about replacing OTPs; it’s about delivering faster checkouts, stronger protection, and the kind of experience today’s customers expect.
Cashfree makes this transition effortless. Passkey authentication is built directly into our card processing stack, allowing merchants to enable biometric payments without additional integrations, development work, or certification overhead. It’s a day-zero capability – ready to activate.
At the same time, Cashfree ensures alignment with RBI’s alternative authentication guidelines and network standards, so merchants can innovate with confidence. Combined with our dynamic routing for transaction optimization- you can be guaranteed of the highest success rates in the industry.
The future of card authentication is biometric, seamless, and secure – and it’s already within reach.
Enable passkeys now – Talk to us today
