G+D's India Push Linked to Digital Payment Growth
Giesecke+Devrient's (G+D) strategy to widely deploy biometric authentication in India is directly tied to the country's fast-growing digital payment system. As transaction volumes increase and user trust becomes vital, G+D's focus on passkey technology aims to strengthen the systems supporting nearly a billion users. It moves beyond basic OTP verification toward more secure, user-friendly methods.
RBI Mandate Drives Passkey Adoption
G+D's increased commitment to passkeys in India directly matches the Reserve Bank of India's (RBI) directive, effective April 1, 2026. This rule mandates two-factor authentication (2FA) for all digital transactions, requiring at least one dynamic authentication factor. This creates an opportunity for biometric solutions like fingerprint or facial scans, which are a better option than traditional One-Time Passwords (OTPs). OTPs can face delays and fraud. The RBI push aims to reduce transaction failures, which Razorpay notes can occur in up to 35% of cases due to authentication issues. Improved methods could boost success rates to an estimated 95%. Global payment companies Mastercard and Visa have started integrating passkey services in India, showing the market is ready for this shift.
India: A Key Market for Growth and Innovation
While G+D's Indian subsidiary reported revenues of about INR 390 crore (USD 47 million) for fiscal year 2025, the company's overall global revenue reached EUR 3.132 billion in fiscal year 2024, showing its large scale. India's digital payments market is a key part of G+D's global strategy and is expected to grow significantly, potentially reaching USD 52 billion by 2034 with an annual growth rate above 22%. G+D has been in India for two decades, providing solutions in digital security, financial platforms, and currency technology. The company is also using its Pune R&D center to drive innovation for both India and global markets.
Beyond Biometrics: Premium Cards and New Services
G+D operates in a competitive market alongside players like Gemalto, De La Rue, and Morpho Detection, as well as specialized fintech security firms. While G+D is recognized for its company culture, its strategy in India goes beyond biometric authentication. The company is exploring new premium products for issuing banks, such as metal, eco-friendly, or recyclable cards. Discussions also cover advanced solutions like AI-driven image generation for banking apps and improved card stock management services. This varied approach shows G+D's aim to deepen its involvement with India's financial sector beyond core security technologies.
Risks and Challenges for G+D in India
Despite strong growth and regulatory support, G+D faces natural risks. India's digital payments market is largely driven by the low-cost UPI system, posing major competitive challenges for traditional card networks and their infrastructure providers. While passkeys offer better security, sophisticated biometric spoofing or device compromise are potential threats. Furthermore, the digital gap in India means not all consumers have the advanced biometric capabilities needed for passkey adoption, risking exclusion of some users. G+D's revenue in India, though significant locally, is a small part of its global revenue, meaning significant scaling is still needed to translate global strength into a dominant local market share.
G+D's Vision for Secure Digital Finance in India
G+D's strong focus on deploying passkeys in India is a strategic move betting on the country's path as a major digital economy. The company expects continued sales growth and plans ongoing investments in technology and infrastructure through its SecurityTech portfolio. By combining advanced authentication with broader payment solutions and using its R&D capabilities, G+D aims to strengthen its position as a reliable partner, providing more secure and seamless digital financial experiences for billions of users in India and elsewhere.