Abstract: The various embodiments herein provide a method and system for transferring funds between users over a voice call. The method comprises registering a plurality of users for funds transfer with a payment system, initiating the voice call between a payer and a payee involved in the funds transfer, establishing a communication link with the payment system during the voice call, providing a funds transfer request to the payment system by the payer, prompting an authentication token and providing a biometric signature of the payer and the payee to the payment system, verifying identity of the payer and the payee based on the authenticity of the biometric signature, retrieving the payer and the payee details from a central database, initiating the funds transfer and sending a funds transfer notification to the payer and the payee indicating that the payment from the payer to the payee has been made.