Zeta and Pluxee launch passkey authentication for RuPay prepaid-card payments

The NPCI-enabled system replaces repeat SMS OTPs with biometric or device-PIN verification for online RuPay prepaid-card transactions. Zeta says passkeys can shorten authentication to 5–7 seconds and reduce checkout abandonment, with expansion planned for more RuPay issuers.

— Source publishedFri, 11 Sept, 2026, 17:55 IST·First seen Fri, 11 Sept, 2026, 18:00 IST·Source The Hindu BusinessLine

What happened

Zeta and Pluxee launched passkey authentication for RuPay prepaid-card online payments, replacing repeat SMS OTPs with biometric or device-PIN verification. The

Key facts

  • 5–7 seconds passkey authentication time
  • 15–25 seconds conventional OTP flow time
  • approximately 99% registration completion rate
  • ₹21,367 crore digital payment fraud in FY2025
  • more than five times the prior year
  • April 1, 2026 RBI mandate effective date
  • September 11, 2026 announcement date

Why this matters

The launch creates partnership and integration opportunities with RuPay issuers, prepaid-program managers, and biometric-authentication providers as passkeys expand beyond the initial deployment.

What to watch

  • NPCI announcements naming additional RuPay issuers, acquirers or payment gateways supporting passkeys.
  • Published data on authentication time, checkout abandonment, authorization uplift and fraud performance after rollout.
  • Reserve Bank of India or NPCI guidance on passkey, device binding, credential recovery and liability treatment.
  • Growth in RuPay prepaid ecommerce transaction share relative to UPI, wallets and debit cards.
  • Reports of account-recovery abuse, biometric spoofing concerns or materially higher false declines requiring OTP fallback.
  • Expand passkey authentication from Pluxee prepaid cards to additional RuPay issuer portfolios and transaction categories.
  • Pair passkeys with risk-based step-up controls, retaining stronger verification for new devices, unusual merchants and high-value payments.
  • Measure checkout completion, authorization rates, support contacts, fraud losses and repeat online spend against OTP-based cohorts.
  • Position prepaid cards as more viable for recurring and app-based commerce where OTP friction has historically depressed usage.
  • Merchant payment gateways and checkout platforms add passkey-ready flows to avoid losing conversion gains to alternative payment methods.