Razorpay has launched what it says is India’s first RBI-compliant biometric-ready Access Control Server (ACS) for card authentication, developed in partnership with YES Bank.

The solution replaces one-time passwords (OTPs) with fingerprint and face ID verification for online card payments.

The launch follows the Reserve Bank of India’s September 2025 circular mandating stronger two-factor authentication for domestic digital transactions.

Under the framework, banks are fully liable for losses if safeguards fail, driving a shift from OTP-only methods to more secure options such as device tokens and biometrics.

Razorpay’s ACS uses device tokenization and passkey standards to enable biometric verification and aims to reduce OTP-related errors that account for about 35% of failed transactions.

Its AI-powered risk engine conducts real-time fraud checks to improve success rates and provide smoother checkouts.

YES Bank, which co-developed the system, said early results show improved authentication success and up to 75% fewer drop-offs, aided by instant card controls and affordability options built into the checkout experience.

The partnership is expected to help issuers cut fraud risk and failed transactions while offering merchants a more reliable and user-friendly payment flow.

Khilan Haria, CPO, Razorpay, said,

“Following the RBI’s final guidelines, we are proud to pioneer and co-create the future of card authentication in India. With Razorpay ACS, we are shaping how biometrics will work seamlessly across every card issuer and merchant in the country.

This is not just about solving today’s OTP delays or fraud risks, it’s about building the next decade of digital trust, where authentication becomes invisible, intuitive, and growth-focused for businesses, while being effortless and secure for customers.”

Anil Singh, Country Head, Credit Cards & Merchant Acquiring, YES BANK, said,

“At YES BANK, we are delighted with the performance of Razorpay ACS, which we have co-created in partnership with Razorpay. We remain committed to delivering secure, seamless, and future-ready payment experiences to our customers.

The high authentication success rates and real-time fraud prevention delivered by Razorpay ACS are being widely acknowledged by our customers, further strengthening their trust and reinforcing our vision of enabling safer, smarter, and more intuitive digital payments at scale.”