India’s Unified Payments Interface (UPI) could soon add an additional confirmation step before money is transferred, in addition to protecting against accidental and fraudulent transactions.
Users would have to press “Yes” or confirm the payment once more before sending money out of their bank account.
The move is aimed at strengthening digital payment security as UPI continues to dominate India’s cashless economy. Some 15 million people pay UPI every day for shopping, bill payments, online orders and peer-to-peer transfers. Besides the UPI PIN authentication of the platform that now exists, it is thought that an extra confirmation screen might reduce the probability of payments being misdirected and fraud.
The additional confirmation prompt will come after they enter the payment amount and verify the transaction with their UPI PIN.
Instead of a payment being processed immediately, users will see a last screen asking them to verify the payment details and tap "Yes" before the transaction is completed.
The feature will help users if they’re sending money to the wrong contact or entered the wrong amount. Such mistakes are becoming more prevalent as QR code payments and saved beneficiaries grow. A final confirmation screen provides users with one last chance to look at the recipient’s name, amount and payment details on the phone.
The proposal also comes at a time when cyber fraud involving digital payments is a concern. Fraudsters often trick users into authorizing payments through fake QR codes, phishing links or misleading payment requests.
While the additional confirmation cannot eliminate scams entirely, it could encourage users to pause and carefully verify transaction details before approving the payment.
Experts say the new step will not change much the speed of transactions. Instead, it will enhance user confidence in digital payments and thus UPI experience in the digital payments and make them more secure and safe without affecting the quality of the user experience.
Similar confirmation mechanisms have already been employed in several online banking platforms and financial services worldwide.
If implemented, the feature can be rolled out through UPI-enabled applications such as Google Pay, PhonePe, Paytm, BHIM and other participating banking apps after the required technical updates. Users can automatically receive the feature through app updates once the framework has been finalized.
India's digital payments ecosystem has grown rapidly in the last few years and UPI is processing billions of transactions per month. As transaction volumes continue to increase, regulators and payment service providers are working toward both convenience and security.
While the full roll-out date for this feature is not yet planned, the double-confirmation feature is an example of how UPI payments are being made safer for consumers.
And we recommend having a look at the recipient details, verifying payment requests, and never accessing QR codes or suspicious links before authorizing any transaction.
Finally, a final "Yes" confirmation would be another important safeguard in India’s rapidly expanding digital payments landscape, and would reduce errors while enhancing trust in UPI-based transactions.
