Digital payments especially UPI have seamlessly integrated into the daily lives of millions of Indians. From paying street vendors to making local store purchases, recharging phones, and booking tickets, UPI (Unified Payments Interface) apps have become an integral part of our financial transactions. However, beneath the convenience lies a web of manipulative practices that exploit unsuspecting users.
The Dark Patterns Unveiled : UPI payments
The Central Consumer Protection Authority (CCPA) has identified 13 types of dark patterns employed by UPI payment apps. These patterns are designed to mislead users, violate consumer rights, and maximize profits for the platforms. Let’s delve into these deceptive tactics:
- False Urgency: Creating a sense of urgency to prompt hasty decisions.
- Basket Sneaking: Adding extra items to the user’s cart without their consent.
- Confirm Shaming: Guilt-tripping users into making certain choices.
- Forced Action: Coercing users into actions they didn’t intend.
- Subscription Trap: Making it difficult to unsubscribe or delink bank accounts.
- Interface Interference: Manipulating the user interface to favor certain options.
- Bait and Switch: Luring users with one offer and switching to another.
- Drip Pricing: Gradually revealing hidden charges during the payment process.
- Disguised Advertisement: Blurring the line between ads and genuine content.
- Nagging: Relentlessly pushing users to take specific actions.
- Trick Questions: Confusing users with ambiguous queries.
- Rogue Malwares: Deploying malicious software to exploit vulnerabilities.
- SaaS Billing: Unfairly charging for software services.
Hidden Charges: A Common Grievance
One prevalent complaint revolves around hidden charges when topping up payment wallets. Users often encounter fees associated with transactions that are not disclosed upfront but are debited later. A recent survey revealed that 52% of online payment platform users have experienced such hidden fees1. These charges, beyond taxes, erode trust and transparency.
The Battle Against Dark Patterns
The Indian government has taken a stand against these manipulative practices. The CCPA’s notification banning dark patterns aims to protect consumers from misleading advertisements and unfair trade practices. However, instances persist, prompting users to voice their concerns.
User Voices: The Survey Insights
LocalCircles conducted a national survey, receiving over 45,000 responses from users across India. Here are some key findings:
- Hidden Charges: 27% of respondents faced hidden charges “very frequently,” while 25% encountered them “sometimes.” Surprisingly, 23% claimed they had “never” faced such charges.
- Bank Account Linking Woes: Subscription traps, where users struggle to remove or delink their bank accounts after linking them for UPI payments, were reported by many
As we continue our digital payment journey, awareness and vigilance are our best defenses against these exploitative practices. Let’s demand transparency and fair play from UPI payment apps, ensuring a safer and more user-friendly experience for all.