Paytm Adds Face ID, Fingerprint for UPI Payments and Cardless ATM Withdrawals: What It Means for Users

Paytm has rolled out two major updates that change how people use UPI in daily life: biometric authentication for payments and cardless ATM withdrawals. Both features are designed to make payments faster while staying within the rules set by National Payments Corporation of India.

For users, the biggest visible change is simple, you don’t always need to enter your UPI PIN anymore.

What’s new: Pay with Face ID or fingerprint

With the new update, users can approve UPI payments using Face ID or fingerprint directly on their phone.

Here’s how it changes everyday use:

Earlier: Open app > Enter UPI PIN > Payment done

Now: Open app > Scan/Pay > Use fingerprint or Face ID > Done

This makes payments quicker, especially for small transactions like food orders, cabs, or shop payments.

But there’s an important rule- As per NPCI guidelines, biometric payments are capped at Rs 5,000 per transaction

For higher amounts, you’ll still need to enter your UPI PIN

So the PIN is not going away, it’s just being used less often.

What about safety and privacy?

This is where many users get confused.

Paytm says your fingerprint or face data stays inside your phone. It is handled by your phone’s system (Android or iOS), not by Paytm or the bank. In simple terms, Paytm claims that it only gets a “yes” or “no” from your phone and not your actual biometric data.

Second big update: Cardless ATM withdrawals

The second feature is equally useful - withdrawing cash without a debit card.

Here’s what changes:

You no longer need to carry your ATM card. At supported ATMs, you just scan a QR code using Paytm UPI. Then approve using fingerprint, Face ID, or UPI PIN. After verification, the ATM gives you cash.

Limits you should know

This feature also follows UPI rules: Up to Rs 10,000 per withdrawal (per transaction). Daily limits depend on your bank

So while it’s convenient, it’s mainly meant for small to mid-size withdrawals, not large cash needs.

What’s actually different for users

From a user point of view, these updates bring three clear changes:

1. Faster payments

No need to type PIN again and again for smaller payments.

2. Less dependency on cards

You can withdraw cash even if you forget your wallet.

3. More flexibility

You can choose between biometric or PIN depending on comfort.

What still stays the same

UPI PIN is still active and required for higher payments

Bank limits and NPCI rules continue to apply

Not all ATMs support cardless withdrawals yet

The bigger picture

This move shows how UPI apps are slowly shifting toward password-less payments, but in a controlled way. NPCI is allowing innovation, but with strict limits to reduce fraud risks.

For everyday users, the impact is practical: payments become quicker, and accessing cash becomes easier - without changing habits too much.

Read More: Paytm Unveils AI-Powered App with Cleaner Interface and Digital Gold Rewards