Zeta and Pluxee have introduced passkey-based authentication for RuPay prepaid cards, moving away from SMS OTPs to biometric verification. This integration aims to reduce payment fraud and accelerate transaction speeds to under seven seconds. The update arrives shortly after Pluxee India secured its Payment Aggregator license from the RBI, signaling a strategic focus on expanding its digital payment infrastructure.
Zeta and Pluxee have officially launched a passkey-based authentication system for RuPay prepaid card transactions. This technology replaces the standard SMS-based one-time password method with device-bound biometrics such as fingerprint scanning or facial recognition. The move aims to resolve the longstanding security vulnerabilities of SMS-based verification, which is frequently targeted by phishing and social engineering attacks. By using cryptographic keys stored locally on a user's device, the companies intend to create a more secure and faster payment environment.
The operational impact of this shift is aimed at enhancing transaction efficiency. Internal data suggests that the passkey authentication process can complete transactions in roughly five to seven seconds, a significant reduction compared to the 15 to 25 seconds typically required for receiving and entering an SMS OTP. For merchants and card issuers, this reduction in friction is intended to improve conversion rates by minimizing cart abandonment, which often occurs during the waiting period for OTP delivery.
From a strategic perspective, this rollout is linked to broader regulatory developments in India's digital payments sector. The Reserve Bank of India has been actively pushing for more secure, device-bound authentication mechanisms to combat the rising incidence of digital payment fraud. For Pluxee, this move also complements its recent regulatory milestone. On August 3, 2026, Pluxee India received authorization from the Reserve Bank of India to operate as a Payment Aggregator, allowing it to expand its service offerings within the digital ecosystem.
While the technology offers significant security and speed advantages, it also introduces specific business risks. The reliance on passkeys means that the user experience is dependent on hardware compatibility. If a user's device does not support modern biometric or passkey standards, they may face friction, which could limit the immediate scalability of the solution across the entire user base. Additionally, the fintech sector remains sensitive to rapid regulatory changes and evolving fraud patterns, which may require companies to continuously upgrade their security infrastructure. The integration, highlighted during the Global Fintech Fest 2026, represents a shift in how prepaid card providers are attempting to balance user convenience with the increasingly complex requirements of digital security.
The next key development for investors and stakeholders will be the pace of adoption among RuPay issuers. Monitoring how quickly this system is deployed across various prepaid card platforms, and whether it effectively contributes to a reduction in reported fraud metrics, will be important for assessing the long-term success of this technology upgrade.