<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/marketing-cms/m2p-blog/2026/09/pci-dss_blog_banner_2000x1000-1.webp" alt="PCI-DSS 4.0 Is Already Here — Is Your Acquiring Stack Actually Ready?" title="" id="745zsdvvn" width="100%" height="362">If you've spent any time in payments over the last two years, you've heard the acronym everywhere: <a class="link" href="https://m2pfintech.com/blog/pci-dss-the-payments-armour/?utm_source=blg&amp;utm_medium=pci-dss&amp;utm_campaign=4" target="_blank">PCI-DSS 4.0</a>. For acquirers and Merchant Management System (MMS) providers, this isn't just another compliance checkbox to tick off — it's a fundamental shift in how card data security is designed, implemented, and proven, with direct consequences for merchant onboarding, technology architecture, and the pace at which new payment products can be launched.With the original <a class="link" href="https://m2pfintech.com/blog/pci-dss-a-quick-guide-to-its-levels/?utm_source=blg&amp;utm_medium=pci-dss&amp;utm_campaign=4" target="_blank">PCI-DSS 4.0</a> deadline of March 2024 behind us, and the final set of "future-dated" requirements becoming mandatory from March 31, 2025, most acquirers and MMS providers are now deep in implementation — or, in some cases, playing catch-up. This blog breaks down what's actually changed, why it matters more for acquirers and MMS providers than for a typical merchant, and how to think about compliance as a competitive advantage rather than a cost center.<h1 class="heading-node" id="gkq36qoik">Why PCI-DSS 4.0 Is a Bigger Deal Than Previous Updates</h1>PCI-DSS has been updated before — 3.0, 3.1, 3.2, 3.2.1 — but those were largely incremental. PCI-DSS 4.0, released by the PCI Security Standards Council, is different in scope and philosophy. It represents the first major overhaul of the standard in nearly a decade, and it was built around three explicit goals:<ol class="list-node" id="z0yqa5g9a"><li>Continue meeting the security needs of the payments industry as threats evolve — particularly around e-skimming, API-based attacks, and cloud-native infrastructure that didn't exist when PCI-DSS 3.2.1 was written.</li><li>Promote security as a continuous process, not a once-a-year audit exercise.</li><li>Add flexibility for organizations using different methods to achieve security objectives — most notably through the new "customized approach" to meeting requirements.</li></ol>For acquirers and MMS providers specifically, this matters more than it does for a single merchant, because you're not managing one card-data environment (CDE) — you're managing (or enabling) card-data environments across potentially thousands of merchants, each with different risk profiles, integration methods, and technical maturity. A change in how PCI-DSS defines scope, authentication, or monitoring doesn't just affect your own infrastructure; it cascades into how you validate, support, and onboard every merchant on your platform.<h1 class="heading-node" id="hdveyd8u0">The Headline Changes That Matter for Acquirers and MMS Providers</h1><h3 class="heading-node" id="jur6xlfjq">1. Multi-Factor Authentication (MFA) Is Now Mandatory Everywhere in the CDE</h3>Under PCI-DSS 3.2.1, MFA was required primarily for remote access and administrative access to the cardholder data environment. PCI-DSS 4.0 (Requirement 8.4.2) extends this significantly: MFA is now required for all access into the CDE, not just remote or administrative access — including access by employees, contractors, and third parties from within the internal network.For an acquirer or MMS provider, this means every internal system touching merchant transaction data, settlement records, or card data — from customer support dashboards to internal risk-monitoring tools to developer access on staging environments — needs MFA enforcement, not just the systems your compliance team originally scoped for it.<h3 class="heading-node" id="u8vbthcuc">2. Password Requirements Have Been Strengthened — and Made More Flexible</h3>Minimum password length has increased from seven to twelve characters (Requirement 8.3.6), and passwords must now include both numeric and alphabetic characters. At the same time, PCI-DSS 4.0 allows for alternative authentication mechanisms that meet an equivalent security bar — a nod to the standard's broader "customized approach" philosophy.For acquirers managing merchant-facing portals and dashboards, this requires an audit of every authentication touchpoint — merchant login portals, internal admin consoles, API key management systems — to ensure password policies actually meet the new bar, not just internal IT systems.<h3 class="heading-node" id="51dpknwfq">3. Targeted Risk Analyses Replace Some Fixed Frequencies</h3>One of the more nuanced changes is the shift from rigid, prescribed frequencies for certain security activities (e.g., "quarterly," "annually") to a framework where organizations can define their own frequency for specific requirements, provided they can justify it through a targeted risk analysis (Requirement 12.3.1).This sounds like it reduces burden, but in practice it shifts the burden from "do the task on schedule" to "prove, with a documented risk analysis, that your chosen schedule is defensible." For an MMS provider managing security processes across a large merchant portfolio, this means building (and maintaining) risk analysis documentation that a QSA (Qualified Security Assessor) can actually validate — not just picking a convenient interval and hoping it holds up in an audit.<h3 class="heading-node" id="x5i77rrnm">4. E-Commerce and Phishing-Related Requirements Have Expanded Significantly</h3>Given the rise in e-skimming attacks (malicious JavaScript injected into payment pages to steal card data at the point of entry), PCI-DSS 4.0 introduces two requirements specifically targeting this vector:<ul class="list-node" id="t2o7s944h"><li>Requirement 6.4.3: All payment page scripts that are loaded and executed in the consumer's browser must be managed — inventoried, justified for business need, and monitored for unauthorized changes.</li><li>Requirement 11.6.1: A change and tamper-detection mechanism must be deployed to alert on unauthorized modifications to HTTP headers and the content of payment pages, with alerts at least weekly.</li></ul>For acquirers and MMS providers who process card-not-present transactions — the majority of e-commerce merchant volume today — this is one of the most operationally demanding new requirements. It requires script inventory management and integrity monitoring across every merchant's payment page, which for a platform serving thousands of merchants means building this as a managed, scalable service rather than a manual, merchant-by-merchant exercise.<h3 class="heading-node" id="pqq4iew47">5. Phishing-Resistant Authentication Is Explicitly Called Out</h3>PCI-DSS 4.0 formally recognizes that not all MFA is equally secure — SMS-based OTPs, for instance, are vulnerable to SIM-swapping and interception in ways that hardware security keys or authenticator apps are not. While not universally mandated, the standard's emphasis on phishing-resistant authentication methods for higher-risk access points signals where the bar is heading, and acquirers building for the next several years of compliance should architect toward this now rather than retrofitting later.<h3 class="heading-node" id="mcuz4ufpz">6. Expanded Scope for Cloud, Container, and Microservices Environments</h3>PCI-DSS 4.0 was explicitly designed with modern infrastructure in mind — containerized deployments, microservices architectures, and cloud-native environments that barely existed in a meaningful way when 3.2.1 was written. This matters enormously for MMS providers, most of whom have built (or are building) their platforms on exactly this kind of infrastructure to achieve the speed and scalability that differentiates a modern acquiring stack from a legacy one.The updated standard requires clearer scoping methodology for these environments — understanding which containers, services, and cloud components touch cardholder data even transiently, and ensuring segmentation controls are validated in environments where infrastructure can spin up and down dynamically. Acquirers running on legacy, static infrastructure may find this section easier to interpret but harder to justify avoiding modernization; MMS providers on cloud-native stacks get more precise scoping tools, but need to invest in continuous compliance validation rather than point-in-time audits.<h3 class="heading-node" id="uuphqg8o6">7. The "Customized Approach" — A New Way to Demonstrate Compliance</h3>Perhaps the most philosophically significant change in PCI-DSS 4.0 is the introduction of the customized approach as an alternative to the traditional "defined approach" for meeting many requirements. Instead of following the prescribed control exactly as written, organizations can design and implement their own control, provided they can demonstrate — through rigorous documentation and testing — that it meets the underlying security objective just as effectively.This is a meaningful opportunity for MMS providers with genuinely sophisticated security engineering capability: it allows compliance architecture to be built around how your platform actually works, rather than forcing your architecture to conform to a one-size-fits-all control. But it comes with a real cost — customized approach validation requires significantly more documentation, a formal risk analysis for each customized control, and a QSA with the expertise to assess it properly. For most acquirers and MMS providers, the defined approach remains the practical default, with the customized approach reserved for specific areas where platform architecture genuinely diverges from what the standard's prescribed controls assume.<h1 class="heading-node" id="ba1pbh5js">Why This Matters More for Acquirers and MMS Providers Than for a Single Merchant</h1>A single merchant needs to secure one, reasonably well-understood card data environment. An acquirer or MMS provider is, in effect, responsible for the compliance posture of an entire ecosystem — sometimes directly (as a service provider validating its own infrastructure), and sometimes indirectly (by enabling and supporting merchant compliance across a diverse portfolio).This creates a few distinct pressures:Portfolio-wide scope complexity. Every merchant integration method — hosted payment pages, direct API integration, SDK-based mobile acceptance, POS terminal integration — creates a different PCI-DSS scoping boundary. An MMS provider supporting all of these needs a scoping methodology sophisticated enough to correctly classify each merchant's environment, not a single blanket policy.Service provider-level validation requirements. As a Level 1 service provider (the classification acquirers and MMS platforms typically fall under), the validation bar is the highest in the standard — a full Report on Compliance (RoC) by a QSA, not a Self-Assessment Questionnaire (SAQ). This means every one of the changes above needs to be demonstrably implemented and evidenced, not just self-attested.Merchant enablement responsibility. Many merchants — particularly SMEs — rely heavily on their acquirer or MMS provider's platform to inherit compliance rather than build it themselves (for instance, through PCI-compliant hosted payment pages that keep the merchant largely out of PCI scope). This means the acquirer's own compliance posture directly determines how much compliance burden merchants face — a genuine differentiator in a market where merchants increasingly choose acquiring partners based on how little compliance work they have to do themselves.Continuous compliance, not annual compliance. PCI-DSS 4.0's emphasis on continuous monitoring (script integrity checks, targeted risk analyses, ongoing vulnerability management) means the old model of "get audited once a year and move on" no longer holds. Acquirers and MMS providers need compliance to be an operational capability embedded in the platform, not a periodic project.<h1 class="heading-node" id="v06jy9geb">A Practical Path Forward: What Acquirers and MMS Providers Should Actually Do</h1>1. Run a gap assessment against the full 4.0 requirement set — not just the future-dated ones. Many organizations focused their initial 4.0 efforts on the requirements that became mandatory in March 2024, then treated the March 2025 future-dated requirements as a separate, later project. By now, both sets are in effect, and a genuine gap assessment across the complete standard is essential if this hasn't already been done comprehensively.2. Prioritize e-commerce script and tamper-detection requirements early. Given how operationally intensive Requirements 6.4.3 and 11.6.1 are to implement at scale across a merchant portfolio, these deserve early, dedicated engineering investment rather than being treated as a checkbox exercise near an audit deadline.3. Build MFA and authentication controls as platform-wide, not system-by-system. Given how broadly Requirement 8.4.2 now applies, retrofitting MFA system-by-system as gaps are discovered is inefficient. A platform-wide identity and access management approach, applied consistently across every system touching the CDE, is far more defensible in an audit and far less operationally painful to maintain.4. Treat targeted risk analyses as a genuine documentation discipline, not a formality. If you're using the flexibility PCI-DSS 4.0 offers around setting your own frequencies for certain controls, invest in rigorous, well-documented risk analysis methodology. A QSA will test whether your reasoning holds up — and weak documentation here is one of the more common reasons organizations fail this part of an assessment.5. Evaluate whether the customized approach is worth pursuing for any specific control. For most organizations, it isn't — the documentation and validation overhead is substantial. But for specific areas where your platform's architecture is genuinely more advanced than what the defined approach assumes, it can be worth the investment, particularly if it removes friction elsewhere in your compliance program.6. Make merchant compliance enablement part of your product roadmap, not just your legal team's remit. The acquirers and MMS providers who will win merchant loyalty over the next several years are the ones who treat PCI-DSS 4.0 as an opportunity to reduce merchant compliance burden — through compliant hosted payment pages, tokenization, and pre-validated integration methods — rather than simply passing the compliance requirement down to merchants unchanged.<h1 class="heading-node" id="6u3ers8a3">The Bigger Picture: Compliance as Infrastructure, Not Overhead</h1>It's tempting to view PCI-DSS 4.0 purely as a cost of doing business — another set of controls to implement, document, and prove. But for acquirers and MMS providers, compliance posture is increasingly a genuine point of competitive differentiation. Merchants evaluating acquiring partners are asking sharper questions than they used to: How much of the PCI burden do you take off my plate? How quickly can I integrate in a way that keeps me out of scope? How resilient is your platform against the e-skimming and API-based attacks that keep showing up in breach reports?An acquirer or MMS provider that has built PCI-DSS 4.0 compliance deeply into its platform architecture — rather than bolting it on as a parallel compliance project — can answer these questions convincingly, turning what looks like a regulatory burden into a genuine merchant acquisition and retention advantage.<h1 class="heading-node" id="y97rs8mjw">Explore M2P's MMS</h1>Navigating PCI-DSS 4.0 doesn't need to mean slowing down your acquiring business or diverting your engineering roadmap for a year. M2P's <a class="link" href="https://m2pfintech.com/merchant-acquiring-solutions/?utm_source=blg&amp;utm_medium=pci-dss&amp;utm_campaign=4" target="_blank">Merchant Management System</a> is built with modern, continuously validated security architecture at its core — from platform-wide authentication controls to merchant onboarding flows designed to minimize PCI scope from day one — so banks, NBFCs, and PSPs can meet the highest compliance bar without sacrificing the speed and merchant experience that keeps them competitive.Explore M2P's MMS to see how compliance-ready infrastructure can power your acquiring business — <a class="link" href="https://m2pfintech.com/contact-us/?utm_source=blg&amp;utm_medium=pci-dss&amp;utm_campaign=4" target="_blank">reach out to M2P</a> today.

Navigating PCI-DSS 4.0 Compliance as an Acquirer or MMS Provider

<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/marketing-cms/m2p-blog/2026/09/m2p_kyc_suite_creative_2000x1000.webp" alt="CKYC, eKYC, Video KYC — Explained. Consolidated. Compliant." title="" id="1g0aimrri" width="100%" height="362">Every bank, NBFC, fintech, insurer, and increasingly every government service desk in India runs on the same underlying question: is this person who they say they are? The answer used to take days and a stack of photocopies. Today, it's expected to take seconds — without compromising on compliance, fraud prevention, or customer experience.That shift is why "KYC software" has become one of the most searched terms in Indian BFSI technology procurement. But the term hides a lot of complexity. Search for it and you'll find a dozen vendors, a dozen acronyms — CKYC, eKYC, VKYC, AUA, KUA — and very little that actually explains how these pieces fit together, what to look for before buying, or what problems still don't have great answers.This guide is meant to be the reference point. It covers what KYC software actually is, the components that make up a complete stack, the evaluation questions most buyers don't think to ask, the compliance landscape it has to operate inside, and where the category is headed next.<h2 class="heading-node" id="9wni4ji28">What Is KYC Software, Exactly?</h2>KYC(Know Your Customer) is a regulatory requirement, not a product. KYC software is the technology layer that lets a regulated institution meet that requirement digitally: capturing a customer's identity, verifying it against authoritative sources, checking it for fraud or tampering, and maintaining an auditable record, all without a human being physically checking a photocopy of a PAN card.In India, this has a specific technical shape because of two connected but distinct government identity infrastructures:<ul class="list-node" id="mi30ir1k1"><li>CKYC (Central KYC Registry) — a central repository (maintained by CERSAI) that stores KYC records once and lets any regulated entity retrieve them instantly, rather than re-collecting the same documents every time a customer opens a new account elsewhere.</li><li>Aadhaar-based eKYC — verification against UIDAI's Aadhaar database, accessed through licensed AUA/KUA (Authentication User Agency / KYC User Agency) integrations.</li></ul>Everything else in a modern KYC software stack — video verification, document OCR, biometric matching, fraud scoring, masking — exists to make those two verification paths faster, more secure, and usable across more channels (web, app, branch, call centre, kiosk).<h1 class="heading-node" id="1klysmv0w">The Components of a Complete KYC Software Stack</h1>If you're evaluating KYC software for the first time, the acronyms are the first wall you hit. Here's what each piece actually does and when you need it — because in practice, most institutions need several of these working together, not just one.<h2 class="heading-node" id="bvuq852ab">CKYC Retrieval</h2>Pulls a customer's existing KYC record using their OVD (officially valid document) number, date of birth, and mobile number. If the customer has ever completed KYC anywhere in the regulated financial system, this can complete onboarding almost instantly — no fresh document upload needed. This is usually the first check a well-designed KYC software flow should attempt, since it's the fastest and cheapest path when it hits.<h2 class="heading-node" id="hphmnisyx">Aadhaar eKYC (AUA/KUA)</h2>When there's no CKYC record to retrieve, Aadhaar-based authentication is the next layer — verifying identity via OTP, fingerprint, face, or iris, and fetching demographic data (name, DOB, address, photograph) directly from UIDAI. This requires the vendor to hold live AUA/KUA licensing, not just claim "Aadhaar integration" — a distinction worth confirming during vendor evaluation, since sub-licensing arrangements vary in reliability and audit-readiness.<h2 class="heading-node" id="rvlxo8k65">Video KYC (VKYC)</h2>RBI's video-based customer identification process (V-CIP) allows fully remote, branch-free onboarding — a human or AI-assisted agent verifies the customer's live video, checks document authenticity, and confirms liveness, all in one session. This matters enormously for lenders and neobanks trying to acquire customers in geographies where opening a physical branch isn't viable, and for institutions that need to serve customers without reliable Aadhaar OTP access (NRIs, elderly customers, low-connectivity regions).<h2 class="heading-node" id="wz3dugzb1">Min-KYC</h2>A lesser-known but increasingly important option: a CKYC-driven onboarding path that doesn't require Aadhaar verification at all. This exists for use cases where full KYC can be completed later (e.g., certain prepaid instruments, small-value accounts) and matters for products that need to go to market fast, in geographies or customer segments where Aadhaar-linked onboarding adds friction or isn't the ideal first step. It's rarely discussed in KYC software marketing, but it's often the fastest, cheapest onboarding path available for eligible use cases.<h2 class="heading-node" id="mwda25dsb">Instant Background Verification</h2>Beyond identity, many onboarding flows also need to check employment history, court records, and address — particularly for lending, hiring, and high-value account opening. Paperless, consent-driven background checks reduce this from a multi-day manual process to something that runs inline with digital onboarding.<h2 class="heading-node" id="45un4891s">Aadhaar Masking</h2>A narrower but non-negotiable requirement under UIDAI rules: any entity storing or displaying Aadhaar numbers must mask the first eight digits. Good KYC software handles this automatically and extends it to custom document formats — not just standard Aadhaar cards — since institutions often need to mask Aadhaar numbers embedded in other scanned documents too.<h2 class="heading-node" id="bld62nlcj">Identity Microservices</h2>For engineering teams building bespoke onboarding flows rather than adopting an off-the-shelf journey, granular APIs matter more than a packaged UI: liveness detection, OCR extraction, face match, GST/KYB (Know Your Business) checks, crime record checks, and AML screening as individually callable services. This is the layer that lets a product team compose their own flow instead of being boxed into a vendor's default journey.<h1 class="heading-node" id="evsu6w33e">What to Actually Evaluate Before Buying KYC Software</h1>Most KYC software comparisons stop at "does it do Aadhaar eKYC and Video KYC." That's table stakes. The questions that actually differentiate vendors — and that most vendor pages, including product pages across the industry, don't answer clearly — are these:1. Fraud detection accuracy, not just fraud detection claims. Almost every vendor claims "AI-powered fraud detection." Few publish what that means in practice: false-positive rates, spoofed-image detection accuracy, deepfake resilience for video KYC, and how forensic checks perform against real attack patterns (photo-of-photo, screen replay, synthetic identity documents). When evaluating a KYC software vendor, ask for these numbers directly, or for reference customers who can speak to fraud outcomes post-implementation — not just onboarding-speed outcomes.2. On-premise vs. cloud availability. Cloud-only KYC software is the default assumption in most vendor pitches, but it's a dealbreaker for public sector institutions, PSU banks, and any entity with data-residency or air-gapped infrastructure mandates. A vendor that genuinely supports both cloud and on-premise deployment — not just "can be discussed" — is solving a real, underserved requirement.3. Total cost of ownership, beyond the per-transaction rate. Per-verification pricing is easy to compare; what's harder to see upfront is the cost of integration effort, the cost of maintaining compliance as regulations change, and the operational cost of handling verification failures and manual review queues. A lower headline rate with a higher failure/fallback rate can cost more in practice. Ask vendors for real fallback-rate and manual-review-rate data, not just headline accuracy claims.4. Coverage beyond Aadhaar, if you operate outside India or serve NRI/foreign-national customers. Aadhaar-centric KYC software is built for the Indian resident use case. If your institution serves NRIs, foreign nationals, or operates in other markets, ask explicitly how the platform handles non-Aadhaar identity documents (passports, foreign national IDs) and whether that capability is native or requires a separate integration. This is a genuine gap across most Indian KYC software vendor pages, ours included as of today — and one worth pressing on directly in RFPs, since the answer varies a lot between vendors who've actually built for it and vendors who haven't.5. Compliance depth: RBI Master Direction, UIDAI audit checklist, and DPDP Act. KYC software doesn't operate in a compliance vacuum. It needs to satisfy RBI's KYC Master Direction (record-keeping, risk categorization, periodic updation), UIDAI's audit checklist for any Aadhaar-linked processing, and increasingly, the Digital Personal Data Protection (DPDP) Act's consent and data-minimisation requirements. Ask any vendor how their audit trail, consent logging, and data retention policies map to all three — not just RBI.6. Low-code/no-code configurability vs. rigid pre-built flows. Institutions with in-house product teams often want to configure onboarding journeys — reordering steps, adding conditional logic, swapping verification methods by customer segment — without a fresh engineering sprint every time. Whether a KYC software platform offers genuine no-code workflow building, or just customization via vendor professional services, materially changes how fast you can iterate post-launch.<h1 class="heading-node" id="mkkhxutgo">Why Institutions Are Consolidating Toward a Single KYC Software Suite</h1>A pattern worth naming explicitly: most institutions didn't set out to buy "a KYC suite." They bought Aadhaar eKYC from one vendor, added Video KYC from another when RBI's V-CIP norms landed, bolted on a background-verification tool for lending use cases, and built Aadhaar masking in-house or through a fourth integration.The result, a few years in, is a fragmented identity stack: multiple vendor contracts, multiple compliance audits, multiple points of integration failure, and no single, coherent view of a customer's verification history across products.Consolidating onto a single KYC software platform — one that covers CKYC, Aadhaar eKYC, Video KYC, Min-KYC, masking, background verification, and identity microservices under one contract, one dashboard, and one audit trail — isn't just a cost play. It removes the integration overhead of maintaining multiple vendor relationships, gives compliance teams one place to pull audit records from, and lets product teams reuse the same identity infrastructure across new products (lending, cards, neobanking, merchant onboarding) instead of re-procuring for each one.<h1 class="heading-node" id="in1nf1hdi">Where KYC Software Is Headed</h1>A few shifts worth watching over the next few years:<ul class="list-node" id="odv04qucp"><li>Agentic AI in verification workflows. Beyond rules-based fraud flags, AI models that can reason across a full onboarding session — cross-referencing document data, liveness signals, and behavioural patterns — are starting to move from research to production in identity verification.</li><li>Deeper video KYC automation. Fully AI-assisted VKYC sessions (reducing dependency on live human agents for routine cases, while retaining human review for edge cases) are becoming a genuine efficiency lever for high-volume onboarding.</li><li>Convergence with AML and fraud monitoring. KYC software and fraud/AML systems have historically been separate purchases; the operational logic for combining them — shared identity signals, shared risk scoring — is increasingly hard to ignore.</li><li>Government and public-sector adoption. Digital identity verification is expanding well beyond BFSI into direct citizen service delivery, welfare disbursement, and public-sector onboarding — a segment most KYC software vendors aren't built to serve at that scale or compliance bar.</li></ul><h1 class="heading-node" id="7im0ydgyj">Where M2P's KYC Suite Fits</h1>M2P's <a class="link" href="https://m2pfintech.com/kyc-suite/?utm_source=blg&amp;utm_medium=kyc&amp;utm_campaign=suite" target="_blank">KYC Suite</a> is built around the consolidation logic described above — CKYC retrieval, Aadhaar-based AUA/KUA authentication, Video KYC (available on both cloud and on-premise), Min-KYC, Aadhaar masking, instant background verification, and identity microservices, all accessible through a single low-code/no-code platform with one audit trail.It's currently used by 75+ BFSI institutions and 5 state governments, processing 3.8 billion digital identification transactions and 10–13 million verifications a day — a scale that reflects both consumer fintech and public-sector deployment, which is a meaningfully different bar than consumer-only KYC software vendors are built to clear.If you're a bank, NBFC, fintech, or government body evaluating what to consolidate onto — or simply trying to move past the CKYC-vs-eKYC-vs-VKYC confusion this guide opened with — it's worth a closer look at the KYC Suite and a <a class="link" href="https://m2pfintech.com/contact-us/?utm_source=blg&amp;utm_medium=kyc&amp;utm_campaign=suite" target="_blank">conversation with the team</a> about which modules map to your actual onboarding gaps.

M2P's AI-Powered KYC Suite: A Complete Guide to Digital Identity Verification, Compliance, and Onboarding at Scale

The Widest Infrastructure Stack in Banking & Fintech: Every Product, Every AI Agent, One Platform

Frictionless Flow Depends More on the Access Control Server Than the Payment Gateway

<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/marketing-cms/m2p-blog/2026/01/upi-biometric-authentication-blog-02.webp" alt="M2P’s UPI stack enabling secure, biometric-powered digital payments" title="" id="g0fdygs83" width="100%" height="253">UPI has evolved far beyond a convenience; it has become the foundational rail of India’s digital economy. From street vendors accepting QR payments to large enterprises moving high-value remittances, UPI now underpins everyday commerce at a massive scale. In June 2025 alone, the platform processed 18.39 billion transactions worth ₹24.03 lakh crore, a testament to the trust, ubiquity, and resilience it has built across the country.&nbsp;With daily transaction volumes frequently crossing 600 million, UPI now operates at an unprecedented reach. Even marginal improvements in security, speed, or accessibility can unlock outsized gains. These improvements help reduce fraud, improve transaction success rates, expand financial access, and drive broader economic efficiency. At this magnitude, authentication is no longer a backend mechanism; it is a critical determinant of user experience, trust, and system-wide stability.&nbsp;Recognizing this inflection point, the Department of Financial Services (DFS), Ministry of Finance, announced a landmark set of initiatives at the Global Fintech Fest (GFF) 2025. At the center of this announcement are three transformative digital features for UPI, led by on-device biometric authentication. Together, they aim to make UPI payments as intuitive as unlocking a smartphone, while continuing to uphold the robust security and regulatory standards that have defined India’s payments ecosystem.&nbsp;This blog explores these new capabilities in detail and what this shift means for onboarding India’s next half-billion digital users.&nbsp;Here’s why biometric authentication is set to redefine UPI. Let’s dive in.&nbsp;<h2 class="heading-node" id="kqrtwi907" style="text-align: left">Why Biometric Authentication?&nbsp;</h2>As UPI processes billions of transactions each month, the way users authentication has become one of the most critical levers. For years, UPI has relied on a 4–6-digit PIN as its primary authentication mechanism. While this approach has served the ecosystem well, its limitations are becoming increasingly visible at this volume of usage.&nbsp;<ul class="list-node" id="t2u02d1tv"><li>Security Risks: PINs can be shared, observed, or stolen through phishing and social engineering, making them vulnerable in high-density or assisted payment environments.&nbsp;</li></ul><ul class="list-node" id="g6pa69sjf"><li>Friction at Volume: Repeated PIN entry adds seconds to every transaction. Given UPI’s massive transaction load, this can lead to failed payments and drop-offs, particularly for low-value, high-frequency use cases like transit or retail.&nbsp;</li></ul><ul class="list-node" id="u5mf2epjh"><li>Barriers to Inclusion: Elderly users, first-time digital adopters, and low-literacy populations often find PIN setup or entry challenging, creating a silent exclusion barrier.&nbsp;</li></ul>To onboard the next half-billion UPI users, India must rethink authentication mechanisms beyond traditional PINs. This shift shines the spotlight on on-device biometric verification, which offers a powerful blend of security, convenience, and financial inclusion.<h2 class="heading-node" id="ns3t2ia7s" style="text-align: left">How On-Device Biometrics Change the Equation?&nbsp;</h2>On-device biometric authentication using a smartphone’s fingerprint sensor or facial recognition offers a fundamentally different approach to trust and verification.&nbsp;Stronger, Non-Transferable Security&nbsp;&nbsp;Biometric credentials are unique to each individual and cannot be shared, guessed, or easily replicated. Biometric data remains securely stored within the device’s secure enclave and is never transmitted during a transaction, significantly reducing exposure risks.Faster, Frictionless Approvals&nbsp;With just a touch or glance, authentication becomes nearly instantaneous. By eliminating manual input, biometrics reduce transaction failures, improve success rates, and create a near-invisible payment experience, especially important as UPI volumes continue to rise.Designed for Inclusion&nbsp;Biometric authentication removes the need to remember PINs or navigate complex inputs, making UPI more accessible for elderly users, rural populations, and individuals with limited digital literacy. This simplicity is key to expanding UPI adoption beyond urban and digitally savvy users.&nbsp;<h2 class="heading-node" id="m5ply88qv" style="text-align: left">How New Biometric UPI Features Work?&nbsp;</h2>Leveraging native OS technologies (Android/iOS) alongside UIDAI’s secure frameworks, these features are designed to deliver frictionless payment experiences without compromising safety or regulatory compliance. From everyday retail payments to onboarding first-time users, biometric UPI is reshaping how millions interact with digital finance.&nbsp;<h3 class="heading-node" id="u8ncelem0" style="text-align: left">1. Authorize UPI Payments Using On‑Device Face or Fingerprint Authentication&nbsp;</h3>The first major upgrade lets users authorize UPI payments using their smartphone’s built-in fingerprint or face recognition, removing the need to manually enter a PIN for eligible transactions and supported devices.&nbsp;How it works:&nbsp;<ul class="list-node" id="fvxxgets8"><li>Users scan a QR code or initiate a payment as usual</li></ul><ul class="list-node" id="bulvzcf78"><li>Instead of typing a PIN, they authenticate via Touch ID or Face ID</li></ul><ul class="list-node" id="gqe00e34h"><li>Authentication occurs entirely on‑device, ensuring biometric data never leaves the secure enclave</li></ul><ul class="list-node" id="ypkmp137k"><li>Transactions continue to undergo standard bank‑level and NPCI‑mandated security validations</li></ul><h4 class="heading-node" id="j3q39frxr" style="text-align: left">Key Benefits for Users and Banks &amp; NBFCs</h4><table class="border-collapse border border-gray-300" style="min-width: 50px"><colgroup><col style="min-width: 25px"><col style="min-width: 25px"></colgroup><tbody><tr class="border border-gray-300"><td class="border border-gray-300 p-2" colspan="1" rowspan="1">Users&nbsp;</td><td class="border border-gray-300 p-2" colspan="1" rowspan="1">Banks &amp; NBFCs&nbsp;</td></tr><tr class="border border-gray-300"><td class="border border-gray-300 p-2" colspan="1" rowspan="1">Faster, near-instant transactions&nbsp;</td><td class="border border-gray-300 p-2" colspan="1" rowspan="1">Maintain strong control and compliance&nbsp;</td></tr><tr class="border border-gray-300"><td class="border border-gray-300 p-2" colspan="1" rowspan="1">Fewer failed attempts and abandoned payments&nbsp;</td><td class="border border-gray-300 p-2" colspan="1" rowspan="1">Reduce transaction failures and customer support load&nbsp;</td></tr><tr class="border border-gray-300"><td class="border border-gray-300 p-2" colspan="1" rowspan="1">Seamless, intuitive experience for daily payments like groceries, cabs, or utility bills&nbsp;</td><td class="border border-gray-300 p-2" colspan="1" rowspan="1">Enable higher transaction volumes without adding friction&nbsp;</td></tr></tbody></table>&nbsp;This feature significantly reduces friction in everyday payment experiences, making digital finance accessible to a broader audience.&nbsp;<h3 class="heading-node" id="dkepv2h4z" style="text-align: left">2. Aadhaar-Based Face Authentication for Instant PIN Setup/Reset&nbsp;</h3>A critical barrier in UPI adoption has been setting or resetting PINs, particularly for users without debit cards or OTP access. With Aadhaar-based facial verification, this process becomes effortless and secure.&nbsp;How it works:&nbsp;<ul class="list-node" id="d0xnzqwao"><li>Users verify their identity using UIDAI‑approved facial authentication frameworks (such as FaceRD, where applicable)</li></ul><ul class="list-node" id="zkn9ug2wc"><li>Once verified, they can set or reset their UPI PIN without a card, OTP, or bank visit</li></ul>Why it’s essential:&nbsp;<ul class="list-node" id="7asl3c8te"><li>Reduces onboarding friction</li></ul><ul class="list-node" id="c1cr7sor4"><li>Makes UPI accessible to first-time users, senior citizens, and rural populations</li></ul><ul class="list-node" id="dxwwvkxzo"><li>expand financial inclusion by enabling millions of previously excluded users&nbsp;into the digital economy</li></ul>This capability ensures first‑time users can complete onboarding without dependency on cards, OTP delivery, or bank branch access, removing a key adoption hurdle.&nbsp;To deliver these solutions widely, financial institutions need a platform that’s fast, secure, and future-ready, and that’s exactly what M2P offers.&nbsp;<h2 class="heading-node" id="qql7zggv9" style="text-align: left">Powering the Future with M2P's UPI Stack&nbsp;</h2>As an NPCI-affiliated partner, our cloud-native, full-stack UPI platform enables banks, NBFCs, PSPs, and TPAPs to build, launch, and scale future-ready UPI capabilities with speed and certainty.&nbsp;At the core of this offering is M2P’s UPI Switch, a robust, high-performance platform that equips financial institutions with the infrastructure, intelligence, and scalability required to meet the evolving demands of India’s digital payments ecosystem.&nbsp;<h2 class="heading-node" id="im0tf3w2m" style="text-align: left">Why Choose M2P’s UPI Switch?&nbsp;</h2><ul class="list-node" id="kwizpg7px"><li>100% API Coverage for seamless integration&nbsp;</li></ul><ul class="list-node" id="yeukrr11o"><li>Low-Code Enablement to accelerate go-to-market&nbsp;</li></ul><ul class="list-node" id="ow3mkc6ny"><li>Modular Architecture for limitless scalability&nbsp;</li></ul><ul class="list-node" id="bgsitvb8f"><li>Economical TCO for cost efficiency&nbsp;</li></ul><ul class="list-node" id="u9cr3kicc"><li>Cloud-Native Design for speed and resilience&nbsp;</li></ul>M2P’s UPI Stack empowers institutions to innovate rapidly, grow reliably, and provide superior user experiences across all UPI rails. Our stack ensures seamless, secure transactions while keeping your business future ready.&nbsp;Ready to lead the next phase of UPI?&nbsp;<a class="link" href="https://m2pfintech.com/contact-us/?activeKey=1&amp;utm_source=Biometric%20UPI&amp;utm_medium=On%E2%80%91Device%20Face%20or%20Fingerprint%20Authentication&amp;utm_campaign=Blog" target="">Talk to our experts</a> and start building your next-generation UPI program today with M2P’s UPI stack.Follow us on&nbsp;<a class="link fui-Link ___1idfs5o f3rmtva f1ewtqcl fyind8e f1k6fduh f1w7gpdv fk6fouc fjoy568 figsok6 f1hu3pq6 f11qmguv f19f4twv f1tyq0we f1g0x7ka fhxju0i f1qch9an f1cnd47f fqv5qza f1vmzxwi f1o700av f13mvf36 f1cmlufx f9n3di6 f1ids18y f1tx3yz7 f1deo86v f1eh06m1 f1iescvh ftqa4ok f2hkw1w fhgqx19 f1olyrje f1p93eir f1h8hb77 f1x7u7e9 f10aw75t fsle3fq f17ae5zn" href="https://www.linkedin.com/company/m2pfintech/mycompany/" target="_blank" rel="noreferrer noopener">LinkedIn</a>&nbsp;and&nbsp;<a class="link fui-Link ___1idfs5o f3rmtva f1ewtqcl fyind8e f1k6fduh f1w7gpdv fk6fouc fjoy568 figsok6 f1hu3pq6 f11qmguv f19f4twv f1tyq0we f1g0x7ka fhxju0i f1qch9an f1cnd47f fqv5qza f1vmzxwi f1o700av f13mvf36 f1cmlufx f9n3di6 f1ids18y f1tx3yz7 f1deo86v f1eh06m1 f1iescvh ftqa4ok f2hkw1w fhgqx19 f1olyrje f1p93eir f1h8hb77 f1x7u7e9 f10aw75t fsle3fq f17ae5zn" href="https://twitter.com/m2pfintech" target="_blank" rel="noreferrer noopener">Twitter</a>&nbsp;for insightful fintech bytes curated for curious minds like you.Source Linkshttps://ddnews.gov.in/en/india-becomes-global-leader-in-fast-payments-as-upi-processes-18-39-billion-transactions-in-june-imf/&nbsp;https://paytm.com/blog/news/dfs-launches-biometric-upi-face-authentication-cash-withdrawal/&nbsp;https://www.angelone.in/news/economy/upi-gets-smarter-now-make-payments-instantly-with-your-face-or-fingerprint&nbsp;https://www.fintechbiznews.com/fintech-digital-payment-/biometric-authentication-at-scale-by-navi-upi&nbsp;https://www.angelone.in/news/economy/npci-plans-biometric-authentication-for-upi-making-pin-optional&nbsp;https://www.electronicpaymentsinternational.com/news/india-upi-transactions-digital-features/&nbsp;https://www.fortuneindia.com/business-news/navi-upi-launches-biometric-based-upi-payments-eliminating-the-need-for-pin/127286&nbsp;

Effortless UPI Payments with On-Device Biometric Authentication

<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2023/03/Behavioral-Biometrics01.webp" alt="M2P Fintech" title="" width="100%" height="253">Over 9,103 bank fraud cases worth 604 billion rupees were reported across India in 2022.  Now, this is not a good sign for the banking industry.&nbsp;Let alone the digital banking sector.With digital transformation on the rise, the cyber threat landscape has evolved too. Fraudsters are adapting sophisticated tactics and technologies to steal identity, data, and money for their corrupt motives. The security attacks have deep risk implications that result in financial loss, regulatory scrutiny, and depletion of customer trust and goodwill.&nbsp;These repercussions have created a dire demand for stringent security in digital banking. A one that does not hamper customer experience. Banks need technology innovation that can go beyond PINs and passwords to deter security attacks without compromising customer experience, trust, or regulatory compliance.&nbsp;Behavioral biometrics serve as a great solution to deter the security risks at stake.&nbsp;Advanced technology in behavioral biometrics can mitigate the security concerns of digital banks without impeding speed, personalization, convenience, or experience. It is a great way to build stakeholder loyalty and trust.&nbsp;<h2 class="heading-node" id="peql4e1rh" style="text-align: left">What is behavioral biometrics? &nbsp;</h2>Behavioral biometrics is a cutting-edge technology that continuously analyzes user identity along with their phygital (physical + digital) and cognitive behavior. It averts security risks such as credential theft, compromised passwords/accounts, user substitution, phishing attacks, license mismanagement, and identity breaches of any kind. The biometric authentication runs without making a noise in the background and does not impede the customer experience on any level.&nbsp;&nbsp;By monitoring and analyzing user movements like swiping, keying, scrolling, or even moving the devices, behavioral biometrics helps differentiate legitimate from fraudulent activities and can easily identify cybercriminals and fraudsters.&nbsp;It creates in-depth profiles of user behavior and uses them as a benchmark for identifying and preventing suspicious transactions. If the system notices any unusual conduct, alerts are triggered in the background to carry out extra research to preserve the integrity of the account and the authorized user. &nbsp;Banks today are exploring biometrics as a possible replacement for PIN and password systems for a more user-friendly banking experience. Behavioral biometrics can usher in a new era in digital authentication when implemented with machine learning and risk assessment techniques. When deployed in conjunction with biometric cards, it can combat even the most sophisticated digital banking fraud attacks. <h2 class="heading-node" id="cotu4k4rk" style="text-align: left">Types of behavioral biometrics &nbsp;</h2>The way a user walks, talks, types on a keyboard, or moves the mouse is factored in behavioral biometrics to validate identity and discover breaches. Kinesthetics, voice inputs and patterns, and devise-based gestures are primary types of behavioral biometrics.&nbsp;<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2023/03/Behavioral-Biometrics03.webp" alt="M2P Fintech" title="" width="100%" height="253">Kinesthetics (Posture &amp; Gait) &nbsp;The way a person's body moves and how their weight is distributed are kinesthetic behaviors of the user. Behavioral biometrics records and analyzes user gait, the way and the manner in which they handle devices, and body movements such as stride length, upper body posture, and movement pace to identify fraudulent activity. &nbsp;Voice Inputs &amp; Patterns &nbsp;The human voice is unique. By capturing narrow-band characteristics such as pitch and format, the perpetrator's identity and motive are very easily verified. The voice inputs and patterns of the user are analyzed, and the distinct, recurring sound variations that occur when they speak are captured and evaluated in behavioral biometrics.&nbsp;Device-Based Gestures (Keystroke Dynamics &amp; Cursor Movements) &nbsp;People interact with devices in specific ways. Typing patterns, keystroke speed and duration, key sequences, and mouse movement patterns have a significant correlation with behavioral intent. Cursor movement analysis in speed, direction changes, clicks, and interactions serves as a basis for user behavior profiles.  &nbsp;The gestures discussed above are analyzed in detail continuously to create behavioral profiles as input to risk engines/fraud monitoring systems. Banks and financial institutions can adopt this advanced technology to provide an extra layer of security for customer identity verification and fraud control.&nbsp;<h2 class="heading-node" id="z3wze9vma" style="text-align: left">How does behavioral biometrics prevent fraud? </h2>The process of preventing fraud and scams with behavioral data happens as follows.<ul class="list-node" id="ayi9ecx61"><li>Collection: The Access Control Server (ACS) monitors and records user actions and behaviors, such as typing rhythm, mouse movements, device usage patterns, and other kinesthetics.  &nbsp;</li><li>Analysis: A unique user profile is created after a thorough analysis of the collected data based on their behavioral patterns.  &nbsp;</li></ul><img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2023/03/Behavioral-Biometrics04.webp" alt="M2P Fintech" title="" width="100%" height="253"><ul class="list-node" id="1frsnzw24"><li>Authentication: When a user attempts to access a protected resource, the system compares the current behavior of the user to their previously established profile. If the behavior matches, the user is authenticated and granted access. &nbsp;</li><li>Monitoring: Continued monitoring and updating of the user behavioral profile is done to ensure accuracy.  &nbsp;</li></ul>This way, behavioral biometrics significantly improves security and user experience in digital banking. &nbsp;<h2 class="heading-node" id="o9mj9ojo6" style="text-align: left">Five reasons why banks need behavioral biometrics &nbsp;</h2><ol class="list-node" id="eq24hgkm0"><li>Stronger security: Behavioral biometrics uses unique behavioral patterns and actions to verify the identity of an individual, providing a stronger form of authentication when compared to traditional methods such as passwords and security tokens. </li><li>User convenience: Unlike traditional biometrics, such as fingerprints and facial recognition, behavioral biometrics do not require any physical input from the user. Instead, it uses actions and behaviors that are performed naturally, such as typing rhythm and mouse movements. This makes it a convenient and user-friendly method of authentication.  &nbsp;</li><li>Continuous authentication: Behavioral biometrics continuously monitor the actions and behaviors of the user, ensuring that the user's identity is continuously verified even after initial authentication. This helps prevent fraud by detecting any changes in behavior that may indicate that a fraudster has taken over the account. &nbsp;</li><li>More difficult to mimic: Unlike other forms of biometrics, it is difficult for a fraudster to mimic the unique behavioral patterns of an individual. This makes it a more secure form of authentication, reducing the risk of fraud. &nbsp;</li><li>Improved fraud detection: By continuously monitoring user behavior, behavioral biometrics can help financial institutions identify potential fraud and investigate suspicious activity, giving them another layer of security to their customer’s accounts. &nbsp;</li></ol>The technology behind behavioral biometrics is evolving, and there is no doubt that a lot of work in this space is already underway. The early indications are quite clear that it will be a key component of banks’ arsenal against the continuously evolving world of fraud.&nbsp;It’s high time banks take behavioral biometrics seriously to authenticate and protect end-users from hacking and fraud.&nbsp; Want to know more about Behavioral Biometrics?&nbsp;&nbsp;&nbsp;Write to us at <a class="link" href="mailto:business@m2pfintech.com">business@m2pfintech.com</a>.&nbsp;<a class="link" href="https://m2pfintech.com/newsletter/" target="_blank" rel="noopener">Subscribe</a>&nbsp;to our newsletter and get the latest fintech news, views, and insights, directly to your inbox.Follow us on&nbsp;<a class="link" href="https://www.linkedin.com/company/m2pfintech/mycompany/" target="_blank" rel="noopener">LinkedIn</a>&nbsp;and&nbsp;<a class="link" href="https://twitter.com/m2pfintech" target="_blank" rel="noopener">Twitter</a>&nbsp;for insightful fintech tales curated for curious minds like you.

5 Reasons why Banks need Behavioral Biometrics

<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2023/03/MicrosoftTeams-image-11-1.webp" alt="M2P Fintech" title="" id="kkcc1k5hr" width="100%" height="317">Video KYC is a game changer in digital onboarding. Since 2020, video-based identity verification has been effective in preventing fraud, reducing onboarding costs, and speeding up the authentication process.&nbsp;&nbsp;A robust face liveness detection is a key part of the <a class="link" href="https://m2pfintech.com/blog/transform-digital-onboarding-with-vkyc/" target="_blank" rel="noopener">VKYC</a> process. It is basically a selfie-based check that scans the user’s facial expressions and blinking gestures to differentiate a real user from a fake impersonator or a bot.&nbsp;<h2 class="heading-node" id="m7mrkrgp6" style="text-align: justify">How can you Create a Robust Face Liveness Detection Application?&nbsp;</h2>There are several tools and technologies available in the market, but the simplest cost-effective method involves using Flutter and Google ML Kit. Using these, you can easily create a face liveness detection application.&nbsp;Wonder how? &nbsp;We have our Flutter experts <a class="link" href="https://www.linkedin.com/in/chinnadurai-viswanathan-b2b6b7a5/" target="_blank" rel="noopener">Chinnadurai Viswanathan</a> and&nbsp;<a class="link" href="https://www.linkedin.com/in/nandhakumar-k-14828813a/" target="_blank" rel="noopener">Nandhakumar Krishnan </a>explain how a face liveness detection application can be created using Google ML Kit. &nbsp;So, here you go. &nbsp;To start with, facial&nbsp;images will be detected by doing the following gestures.<ol class="list-node" id="kg1t9mjv2"><li>Left - Turn&nbsp;</li><li>Right - Turn&nbsp;</li><li>Look - UP&nbsp;</li><li>Look - Down&nbsp;</li><li>Wink 😉&nbsp;</li><li>Smile 😃&nbsp;</li></ol>We will use Google’s library named <a class="link" href="https://firebase.google.com/docs/ml-kit" target="_blank" rel="noopener">Firebase ML Kit</a> to detect the faces within an image. <a class="link" href="https://pub.dev/packages/camera" target="_blank" rel="noopener">CameraPreview</a> is used to capture the user’s image, and then it will be sent to the <a class="link" href="https://firebase.google.com/docs/ml-kit" target="_blank" rel="noopener">Firebase ML Kit</a> library, which provides the face values.&nbsp; &nbsp;Now, let’s explore the Firebase ML Kit further.&nbsp;<h2 class="heading-node" id="ecwzez33o" style="text-align: justify">Firebase ML (<a class="link Hyperlink SCXW22502046 BCX0" href="https://firebase.google.com/docs/ml-kit" target="_blank" rel="noreferrer noopener">Firebase ML Kit</a>):&nbsp;</h2>Firebase ML Kit’s Face Detection API is a powerful tool to&nbsp;detect faces within images, which allows you to identify important facial features and obtain the contours of detected faces.&nbsp;&nbsp;This technology performs exceptionally well in the pre-processing phase of the image and detects different zones of the face accurately. The API can also identify many facial expressions and emotions, making it a valuable tool for developers looking to create facial recognition with greater accuracy and precision.&nbsp;&nbsp;After the images are captured from <a class="link" href="https://pub.dev/packages/camera" target="_blank" rel="noopener">CameraPreview</a>, it is tested using the following dependencies.&nbsp;<ol class="list-node" id="7f90uhnxd"><li><a class="link" href="https://pub.dev/packages/google_ml_kit" target="_blank" rel="noopener">Google MLKit (google_mlkit)</a>&nbsp;</li><li><a class="link" href="https://pub.dev/packages/camera" target="_blank" rel="noopener">Camera (camera)</a>&nbsp;</li></ol><h2 class="heading-node" id="pv2dvk5be" style="text-align: justify">Flutter Dependencies&nbsp;</h2><img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2023/03/1.webp" alt="M2P Fintech" title="" width="100%" height="120"><h2 class="heading-node" id="d7sjvjvno" style="text-align: justify">Android Dependencies&nbsp;</h2><img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2023/03/2.webp" alt="M2P Fintech" title="" width="100%" height="91"><img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2023/03/3.webp" alt="M2P Fintech" title="" width="100%" height="117"><h2 class="heading-node" id="i0796e05v" style="text-align: justify">How to Get Face Values using Flutter &amp; Android dependencies?</h2>The following steps will help you get face values using Flutter and Android dependencies.&nbsp;Step 1The first step is to set the preview of the camera in Flutter.&nbsp;&nbsp;<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2023/03/4.webp" alt="M2P Fintech" title="" width="100%" height="120">In Flutter, the camera controller needs 3 parameters.&nbsp;<ol class="list-node" id="aj57jbroc"><li>List of cameras (List&lt;CameraDescription&gt; cameras = [];)&nbsp;</li><li>Resolution of Photo&nbsp;</li><li>Audio needs — Based on your requirement&nbsp;</li></ol><img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2023/03/5.webp" alt="M2P Fintech" title="" width="100%" height="189">Using StreamBuilder, we can get the photo from the camera every second to process the images.&nbsp;<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2023/03/6.webp" alt="M2P Fintech" title="" width="100%" height="104">The cameraController?.startImageStream() method returns a ‘CameraImage’ which can be used for ML image processing. If you use Firebase ML for Flutter, you can directly pass the CameraImage to it for processing. Once the processing is complete, you can return the result and display it in a User Interface (UI).&nbsp;&nbsp;Note: The ‘cameraController?.startImageStream()’ method provides ‘CameraImage’ instance, but Google ML Kit requires an ‘InputImage’ object to perform face detection. Therefore, we need to convert the ‘CameraImage’ to an ‘InputImage’ object to build the face detection logic. In case you’re not familiar with ‘InputImage’, it is an ML Kit class that offers a common representation of images used as input data for machine learning models. It can be created from various sources such as bitmap, media image, or Byte Buffer.&nbsp;&nbsp;<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2023/03/7.webp" alt="M2P Fintech" title="" width="100%" height="74">Step 2Once you have implemented the above code, you can design your camera view in your application.&nbsp;&nbsp;Note: The below onImage method code is our special requirement, so we’ve implemented a few things.&nbsp;<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2023/03/8.webp" alt="M2P Fintech" title="" width="100%" height="454">Now we have obtained the InputImage from the camera stream, then the next step is to process the image and detect faces using the FaceDetector from the google_mlkit_commons library. This will display a list of all the faces present in the image, that can be used for further processing.&nbsp;&nbsp;Step 3Using this faceDetector instance, we will get the list of faces from InputImages objects.<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2023/03/9.webp" alt="M2P Fintech" title="" width="100%" height="368">The output of the image will be as below.&nbsp;<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2023/03/MicrosoftTeams-image-9.webp" alt="M2P Fintech" title="" width="100%" height="254">If you are interested in reusing the above codes in your existing native applications, you can refer to this article on <a class="link" href="https://m2pfintech.com/blog/the-implications-of-flutter-in-fintech/" target="_blank" rel="noopener">The Implications of Flutter in Fintech</a>.&nbsp; With the power of ML and Flutter, the possibilities are endless for creating intelligent apps that offer a better user experience.&nbsp;&nbsp;If you want to know more about how we implement face liveness detection in Flutter and Google ML Kit, write to us at <a class="link" href="mailto:business@m2pfintech.com" target="_blank" rel="noopener">business@m2pfintech.com</a>!&nbsp;This article is authored by <a class="link" href="https://www.linkedin.com/in/chinnadurai-viswanathan-b2b6b7a5/" target="_blank" rel="noopener">Chinnadurai Viswanathan</a>.<a class="link" href="https://m2pfintech.com/newsletter/" target="_blank" rel="noopener">Subscribe</a>&nbsp;to our newsletter and get the latest fintech news, views, and insights, directly to your inbox.Follow us on&nbsp;<a class="link" href="https://www.linkedin.com/company/m2pfintech/mycompany/" target="_blank" rel="noopener">LinkedIn</a>&nbsp;and&nbsp;<a class="link" href="https://twitter.com/m2pfintech" target="_blank" rel="noopener">Twitter</a>&nbsp;for insightful fintech tales curated for curious minds like you.

Unmask Face Liveness Detection by Integrating Google ML Kit into your Flutter App

<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2022/07/Creative-AePS-Blog-03.webp" alt="M2P Fintech" title="" width="100%" height="253">Over 85% of bank accounts in India are inactive.Research shows that the inactive accounts can be attributed to the issues faced by the underserved populace across remote corners of the country.<blockquote class="block-node" id="vrcfnudss">Bringing the underbanked and unbanked population into mainstream financial services is crucial for&nbsp;<a class="link au lm" href="https://m2pfintech.com/blog/fintech-a-catalyst-for-financial-inclusion/" target="_blank" rel="noopener ugc nofollow">financial inclusion</a>, the foundation of economic growth.</blockquote>Digital payment modes such as mobile wallets,&nbsp;<a class="link au lm" href="https://m2pfintech.com/blog/upi-the-driver-of-economic-growth-and-inclusion/" target="_blank" rel="noopener ugc nofollow">UPI</a>, contactless, payment cards, and QR codes have enabled universal access to financial services. But they still leave a gap for senior citizens, underprivileged, and inerudite sections of the society. These sections find it challenging to buy a smartphone or a payment card or even remember a passcode or PIN. Thus it becomes harder for them to join the digital Indian ecosystem.To resolve these challenges and to enable people from all walks of life to benefit from digital financial services, Aadhaar enabled Payment System (AePS) was brought into existence.Before diving in to know more about AePS, let’s have a quick look at what Aadhaar is and how it helps financial inclusion.<h2 class="heading-node" id="0c61">Aadhaar, driving inclusivity, and benefits</h2>Aadhaar is a 12-digit individual identification number issued by the UIDAI (Unique Identification Authority of India) on behalf of the Indian Government. In India, the Aadhaar number serves as a proof of identity and address. Any citizen of India is eligible to apply for Aadhaar Card. They can receive it via India Post, and as an e-Aadhaar downloaded from the UIDAI website.Aadhaar, the world’s largest biometric ID system, has been a crucial enabler of inclusive financial services in India. It captures fingerprints, retinal scans, and facial identification as chief authentication factors for transactions. So, the bank customer need not carry a smartphone or a payment card, or remember PINs and passwords.<blockquote class="block-node" id="vqdwnw2pm">More than 131 crore adults registered with Aadhaar have seamless access to banking services, insurance, and direct benefit transfers from over 700 financial inclusion schemes announced by the central and state governments.India’s financial inclusion index stands at 53.9, which is an impressive display of inclusivity brought about by Aadhaar.</blockquote>Aadhaar leverages advanced technology for transparent and targeted delivery of financial services, benefits, and subsidies without the hassle of intermediaries. Aadhaar saved the Indian government ₹2.25 lakh crores in Direct Benefit Transfers (DBT) by getting rid of fake beneficiaries and routing benefits to deserving people.<h2 class="heading-node" id="aab1">What is AePS?</h2>Aadhaar enabled Payment System (AePS) is a payment system that facilitates interoperable digital financial transactions through Aadhaar card-based verification (quick eKYC). It uses a Unique Identification Number or the Aadhaar number to make transactions effortlessly. Serving as a simple, secure, and user-friendly platform, AePS helps blue-collared workers, senior citizens, and the underprivileged to benefit from cashless transactions.AePS is a bank-led model, and any Indian resident can utilize the service just with their Aadhaar number that is linked to their bank account — Aadhaar Enabled Bank Account (AEBA). The Aadhaar enabled Payment System allows online transactions to take place at PoS (Micro ATM)/Kiosk/mobile devices through the Business Correspondent (BC) of any bank using Aadhaar authentication.Leveraging AePS, banks can empower all segments of society by increasing user-friendly access to cash deposits, payments, money transfers, and withdrawals. AePS use cases are accessible at any biometric-enabled touchpoint, viz., all-in-one integrated devices, mobiles/PCs/tablets, or any accessories that meet the technical specifications defined by UIDAI. By enabling AePS solutions, banks can enable seed status checks for direct benefit transfers, social security pensions and government subsidies.<h2 class="heading-node" id="f55b">What are the requirements for AePS transactions?</h2>AePS does not need a smartphone, document, or payment card. It only requires the customer to link the Aadhaar card to the bank account to capture the following info.<ul class="list-node" id="3lglglm5z"><li>Aadhaar Number</li><li>Biometrics-fingerprint identification</li><li>Name or Bank Issuer Identification Number (IIN)</li></ul>If not, just remembering the last four digits of the Aadhaar number will do. The Business Correspondent with an AePS machine or Micro ATM on assisted mode should be able to do any transaction for the customer.<h2 class="heading-node" id="ab00">Key objectives</h2>The main objective of AePS is to use Aadhaar number/ Virtual Identity to access AEBA for banking transactions through Business Correspondents (BC).It also aims to:<ul class="list-node" id="n7aofhjeh"><li>Securely facilitate&nbsp;<a class="link au lm" href="https://m2pfintech.com/blog/why-payments-interoperability-is-a-must-for-todays-generation/" target="_blank" rel="noopener ugc nofollow">interoperability</a></li><li>Enable quick eKYC services</li><li>Electronify retail payments as per RBI regulations</li><li>Build a full range of Aadhaar enabled Banking Services</li><li>Improve financial inclusion in India (According to the goals of GoI and RBI)</li><li>Enable intrabank and interbank transactions through a central switching &amp; clearing agency</li><li>Empower bank customers to use Aadhaar for banking transactions</li></ul>In addition, AePS helps deliver Government disbursements like NREGA, social security pension, and handicapped old age pension.<h2 class="heading-node" id="8be7">AEBA services</h2>With the help of AEBA (Aadhaar Enabled Bank Account), banks can offer the following services.<ul class="list-node" id="hakcr4xsc"><li>Cash Deposit</li><li>Balance Enquiry</li><li>Purchase</li><li>Cash Withdrawal</li><li>Mini Statement</li><li>Aadhaar to Aadhaar Fund Transfer</li><li>eKYC</li><li>Best Finger Detection</li><li>Demographic Authentication</li><li>Aadhaar Seeding Status</li><li>Self-Help Group (SHG) Transaction</li><li>BHIM Aadhaar Pay</li><li>Authentication</li></ul><h2 class="heading-node" id="7a75">How can customers use AePS?</h2>Customers can make AePS transactions in two ways.<ul class="list-node" id="uxpw6ofk8"><li>Through Business Correspondents&nbsp;— who usually represent the banks or entities. They are equipped with Micro ATM devices for facilitating customer transactions.</li><li>Through BHIM Aadhaar Pay at merchant locations&nbsp;— where the customer can make payments just by using Aadhaar number/VID and verify their identity using biometrics.</li></ul><h2 class="heading-node" id="614d">5 steps to perform an AePS transaction</h2>The steps below will guide customers to perform an AePS transaction easily.<ol class="list-node" id="9kqme9bxs"><li>Visit an ATM or contact a banking representative</li><li>Enter the 12-digit Aadhaar number and bank account number in the PoS machine</li><li>Choose a transaction type from the list- cash deposit, mini statement, withdrawal, balance enquiry, or fund transfer</li><li>Enter the transaction amount</li><li>Verify identity using biometrics (iris scan, fingerprint, or face recognition)</li></ol>Once all this is done properly, the transaction will be completed, and you can collect your receipt.<h2 class="heading-node" id="f14e">Why and how can banks and merchants offer AePS?</h2>For BanksBanks can reap the following benefits by offering AePS to their customers.<ul class="list-node" id="63zbggip1"><li>Reach more customers by engaging with Business Correspondent</li><li>Cut costs by leveraging digitization and reducing the printing of cheques and payment cards</li><li>Save time and money using a Business Correspondent instead of brick and mortar branches</li><li>Enable smooth interoperability among banks</li><li>Establish a quick and easy paperless KYC</li></ul>When banks wish to offer AePS to their customers, they just have to apply with NPCI / UIDAI. Then, they will be permitted to deliver AePS after the vetting and application process is completed.For MerchantsMerchants can accept AePS for cost-effective and inclusive payments. This will help them widen their customer base. Merchants can offer AePS by just applying to an authorized bank. After this, they can then receive digital payments for goods and services that are delivered from their customers.<h2 class="heading-node" id="1574">Greater security, trust, and inclusion</h2>When banks and merchants offer AePS, their customers can easily transact just with biometric authentication, either a face recognition, iris scan, or fingerprint identification. All these three aspects can never be forged, ensuring secure transactions.Banks and merchants can gain more customers through AePS as transactions can happen without the need of a physical card, passbook, smartphone or any other document. This will improve customer trust and confidence to make transactions in rural areas, especially among the underbanked segments. Banks across India are attributing enhanced revenue and cost-cutting to AePS offering.Want to add AePS to your payment ecosystem? Write to us at&nbsp;<a class="link au lm" href="mailto:business@m2pfintech.com" target="_blank" rel="noopener ugc nofollow">business@m2pfintech.com</a><a class="link" href="https://m2pfintech.com/newsletter/">Subscribe</a>&nbsp;to our newsletter and get the latest fintech news, views, and insights, directly to your inbox.Follow us on&nbsp;<a class="link" href="https://www.linkedin.com/company/m2pfintech/mycompany/">LinkedIn</a>&nbsp;and&nbsp;<a class="link" href="https://twitter.com/m2pfintech">Twitter</a>&nbsp;for insightful fintech tales curated for curious minds like you.

Revolutionizing Financial Inclusion- Aadhaar enabled Payment System (AePS)

<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2022/05/Wordpress-main-.webp" alt="M2P Fintech" title="" width="100%" height="356">Know Your Customer/Know Your Client (KYC) is a mandatory process that verifies and authenticates a customer’s identity. All legal and financial institutions must validate their customers to prevent any illegal or fraudulent activities as per Reserve Bank of India’s norms.&nbsp; Under the guidance of the Prevention of Money Laundering Act, 2002 (PMLA), the RBI mandates that all banks and financial institutions implement KYC procedures.&nbsp; KYC starts with verifying Proof of Identity (POI) and the Proof of Address (POA) and by which banks, insurance companies, and other organizations obtain information and better understand their customers. It is applicable for both new and existing customers and is the first step in account creation or even to allow a transaction.&nbsp;<h2 class="heading-node" id="9083">Why is KYC mandatory?</h2>As per the Reserve Bank of India’s mandatory regulation, KYC came into legal effect in 2002. The RBI mandates that all financial and legal institutions should assess their customers.&nbsp; KYC’s objective is to help banks and other financial institutions to assess and validate their customers. An effective KYC alleviates and combats all illicit activities. A financial institution can identify potential threats, criminal, and other illegal activities while verifying the KYC required documents. In a nutshell, a financial institution or a business/corporate uses KYC for,&nbsp;<ul class="list-node" id="32oq3a921"><li>Building and Verifying a Customer’s Identity&nbsp;</li><li>Understanding Customer’s Activities&nbsp;</li><li>Evaluating the risks involved with the Customer’s Activities</li></ul><h2 class="heading-node" id="2ff5">How does KYC work?</h2>The KYC process is carried out seamlessly with the following simple steps:&nbsp;<ul class="list-node" id="pce88galo"><li>First, the applicant’s PAN/ AADHAR details are collected and validated.&nbsp;</li><li>The applicant further supports the information provided by entering the required details on the website.&nbsp;</li><li>The applicant’s document goes through various checks and authentication processes by the financial entity.&nbsp;</li><li>Once the documents are verified, and once named eligible, then the applicants are onboarded.&nbsp;&nbsp;</li></ul><h2 class="heading-node" id="23fe">Evolution of KYC</h2>Back in 2002, the Reserve Bank of India (RBI) made KYC a legal and mandatory procedure for all financial institutions, preventing misuse of the sensitive information held by banks and restricting money laundering activities. Evolving from a Paper-based physical attestation method to video adoption, KYC has come a long way. The paper-based KYC demands more physical input because of various document requirements. In contrast, the e-KYC makes the verification procedure less complicated by reducing the physical work of businesses and clients where the data is stored and verified entirely online.&nbsp;&nbsp; The e-KYC or paperless KYC verification procedure became more preferred by customers once the internet boomed. Now doing e-KYC is made even more accessible as the Government of India has launched Digi Locker under its Digital India initiative. It is a digital document wallet that helps its users to store authentic documents virtually and is highly secured by Aadhaar/OTP authentication.<h2 class="heading-node" id="5fbe">Types of KYC</h2><img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2022/05/Wordpress-03.webp" alt="M2P Fintech" title="" width="100%" height="284"><h3 class="heading-node" id="ympukq7zn">1. Aadhaar-based KYC</h3>Aadhaar-based KYC verification follows the regulations of The Unique Identification Authority of India (UIDAI) and verifies proof of identity and residence through one’s Aadhaar number. In addition, the UIDAI provides information to service providers to activate customer services such as bank accounts, mobile connections, etc.&nbsp; Every Aadhaar cardholder can quickly and easily complete their KYC process. Aadhaar based KYC is an efficient, paperless process that adheres with government standards.&nbsp; The Aadhaar based KYC authenticates data in two different ways:&nbsp; OTP-based  - The financial institution verifies the customers’ identity by triggering an OTP to their Aadhaar linked mobile number.&nbsp;&nbsp; Biometric-based  - For Identification and Verification, the financial institution uses the biometrics of the customer by using UIDAI (Unique Identification Authority of India) approved scanners.<h3 class="heading-node" id="ebxjgryx3">2. In-Person Verification (IPV) KYC</h3>The In-person KYC procedure was used by the Security and Exchange Board of India (SEBI) for mutual fund investors. Unlike the other prevalent methods, in-person verification requires the individual to undergo the process offline in an institution, KYC kiosk, or at an AMC. IPV has now upgraded their process via OTP mechanism.<h3 class="heading-node" id="31fd">3. Digital KYC</h3>It is a paperless process where a live photo of the client and their Aadhaar is verified and processed online. It also involves submitting the Official Valid Documents (OVD’s) such as Aadhaar, Pan Card, Passport or a Driver’s license.&nbsp; The digital KYC techniques have many advantages such as,&nbsp;<ul class="list-node" id="pewatsdgk"><li>The customer’s identity verification happens in real-time,&nbsp;</li><li>The process is flexible because the customer can use any of the OVDs,&nbsp;</li><li>The process is highly secure and efficient due to privacy laws and the usage of AI technology.&nbsp;</li></ul><h3 class="heading-node" id="0da4">4. Video KYC</h3>RBI allowed the usage of Video KYC in 2020 due to the pandemic constraints. Video KYC is a procedure that verifies details of the client in a video-based process. This process involves an auditor and an agent for authentication and audit. Before establishing an account-based relationship, the agent collects the details using video-audio features and AI technology. The process is smoothened by usage of a number placard that helps authenticating the customer.&nbsp;&nbsp; Video KYC is available as:&nbsp;<ul class="list-node" id="dd9lh3yyz"><li>VCIP - Video-based Customer Identification Process&nbsp;</li><li>VIPV - Video-based In-Person Verification&nbsp;</li><li>VBIP - Video-based Identification Process&nbsp;</li></ul>&nbsp;It employs a trained individual’s audio-video interaction and automated verification methods such as geo-tagging and facial matching.&nbsp;<h3 class="heading-node" id="4d8e">5.&nbsp;Central KYC (CKYC)</h3>CKYC is a customer or financial institution submitting a Central KYC form and proof of identity and proof of address that relies on the central repository of customer records for CERSAI (Central Registry of Securitization Asset Reconstruction and Security Interest of India). The process detects any duplicate accounts and mitigates other risks.&nbsp; The C-KYC identifier is a 14-digit unique identifier assigned to a client when they upload their details for KYC. When a client opens an account without C-KYC, it may require them to repeat the whole process. But this 14-digit identifier removes that need, and the customer can use this number to update their information throughout all their accounts uniformly.<h3 class="heading-node" id="4feb">6. In-app KYC&nbsp;</h3>This KYC process brings out easy and hassle-free experiences to the customers. All the verification process happens with the help of a smartphone, where the clients can conveniently carry out bank transactions, open bank accounts, and other banking operations.&nbsp; The clients need to use their smartphones to verify their IDs or passport and begin the KYC process. The KYC also involves real-time scanning of IDs to prevent identity forgeries. It is highly secure due to the deployment of secure technologies.<h3 class="heading-node" id="a37c">7. Offline KYC</h3>Offline KYC requires the submission of all the necessary physical documents for verification. It requires filling in all the required details like Aadhaar and PAN. After this, the client must visit a nearby KRA to complete the process and receive an official application number to identify and continue the verification process. Or an agent is sent to the customer’s place to collect documents for KYC verification.<h2 class="heading-node" id="649c">So, what is KRA?</h2>KRAs are KYC Registration Agencies that maintain the SEBI (Security and Exchange Board of India) registered companies records under the KYC regulations Act, 2011. To bring uniformity and avoid duplicate KYC processes, this KRAs help regulate the KYC process that allows a company to authenticate its clients and offer better customer service.&nbsp; Five different agencies that work as KRAs in India are:&nbsp;&nbsp;<ul class="list-node" id="83rt2nv4f"><li>CVL KRA&nbsp;</li><li>CAMS KRA (Computer Age Management Services Pvt Ltd.)&nbsp;</li><li>NSDL KRA (National Securities Depository Ltd)&nbsp;</li><li>Karvy KRA (Karvy Data Management Services)&nbsp;</li><li>NSE KRA (National Stock Exchange)&nbsp;</li></ul>To conclude, KYC has evolved over the years from physical forms to real-time AI technology verification methods. KYC satisfies and provides a hassle-free experience to the customers and helps financial service providers establish a smooth relationship. If you wish to implement a robust KYC system, check out our blog on <a class="link" href="https://m2pfintech.com/blog/crack-the-kyc-jigsaw-ease-onboarding-compliance/">How to Crack the KYC Implementation.</a><a class="link" href="https://m2pfintech.com/newsletter/">Subscribe</a>&nbsp;to our newsletter and get the latest fintech news, views, and insights, directly to your inbox. Follow us on&nbsp;<a class="link" href="https://www.linkedin.com/company/m2pfintech/mycompany/">LinkedIn</a>&nbsp;and&nbsp;<a class="link" href="https://twitter.com/m2pfintech">Twitter</a>&nbsp;for insightful fintech tales curated for curious minds like you.

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