Dark patterns affect 4 in 5 Indian payment users

82% report interface interference on Indian payment apps.

A majority of users of online payment platforms in India say they have encountered deceptive design practices, or "dark patterns,” as 82% have experienced interface interference.

According to a LocalCircles survey of more than 141,000 respondents across 386 districts, the interference is where payment platform interfaces promote products or services they were not looking for. 

Another 68% said they had difficulty removing or delinking their bank accounts after linking them for UPI payments, a practice described as a subscription trap.

The findings come as digital payments continue to grow in India. 

In 2025, the Unified Payments Interface (UPI) processed more than 228 billion transactions worth nearly $3.0t (INR300 lakh crore). 

In January 2026 alone, UPI recorded 21.7 billion transactions valued at $283.3b (INR28.33 lakh crore). 

UPI now accounts for more than 80% of India's retail digital payment transactions, whilst India contributes nearly 49% of global real-time digital payment transactions.

According to the survey, 63% of respondents said they had been charged hidden fees that were not disclosed before payment but were later deducted from their accounts. 

This was up from 52% in a similar survey conducted 24 months earlier.

The survey also found that 66% of respondents experienced "bait and switch" practices, where cashback offers were advertised but not provided after completing the required transaction. 

This figure increased from 62% over the past two years.

Another 61% said they had experienced "basket sneaking", where an additional product or service was added to their transaction without their consent. 

Half of those surveyed reported seeing advertisements presented as information rather than clearly identified as ads.

Meanwhile, 42% of respondents said they had experienced forced action, such as having wallet funds blocked or being required to share their contact list to use a payment service. This figure was unchanged from the previous survey.

The Central Consumer Protection Authority (CCPA) has identified and prohibited 13 dark patterns used on digital platforms, including false urgency, basket sneaking, confirm shaming and forced actions.

The Reserve Bank of India (RBI) has also introduced new e-mandate rules aimed at strengthening consumer protection. 

These include mandatory pre-debit alerts before recurring payments are processed and provisions allowing users to pause or cancel payment mandates at any time.

LocalCircles said the survey findings have been shared with the RBI, the National Payments Corporation of India (NPCI) and the CCPA. It also called for measures to ensure digital payment platforms are free from dark patterns.