Disclosed is a method of authenticating a user based on location data. The method includes receiving, using a communication device, a user location from a location tracking device associated with the user. Further, the method includes receiving, using the communication device, a terminal location from a computing terminal. Yet further, the method includes computing, using a processing device, a distance between the user location and the terminal location. Further, the method includes performing, using the processing device, a first comparison of the distance with a first predetermined threshold value. Moreover, the method includes authenticating, using the processing device, the user based on a first result of the first comparison.