India’s digital payments boom is facing a credibility test, with over 80% of users reporting exposure to manipulative “dark patterns” on platforms, even as UPI cements its dominance in retail transactions. A new LocalCircles survey shows that deceptive design practices—from hidden charges to interface manipulation—remain deeply embedded in the ecosystem.

The findings come as the Reserve Bank of India (RBI) tightens its e-mandate framework, introducing pre-debit alerts and easier cancellation of recurring payments to improve user control.

Hidden charges spike despite regulatory push

Nearly 63% of users surveyed said they were hit by hidden charges that were not disclosed upfront but later debited—up from 52% two years ago, indicating limited impact of earlier interventions.

“Hidden charges rather than upfront charges are what leave users feeling cheated,” LocalCircles said, adding that RBI’s mandatory pre-debit alerts are expected to give consumers advance visibility before deductions.

Subscription traps remain persistent, with 68% of users reporting difficulty in unlinking bank accounts or cancelling mandates once activated.

Interface manipulation, misleading offers widespread

The survey highlights the scale of interface-driven manipulation, with 82% of users experiencing “interface interference”, where platforms push unsolicited products or influence decision-making.

66% of respondents also reported bait-and-switch practices, where promised cashback or rewards were not delivered after transactions.

Other dark patterns include basket sneaking (61%), forced actions such as blocking wallet funds or demanding contact access (42%), and disguised advertisements (50%).

RBI framework seen as structural corrective

LocalCircles said RBI’s provision allowing users to pause or cancel mandates at any time is likely to reduce subscription traps by simplifying exit mechanisms.

“The alert and consent framework introduces an independent verification layer beyond the app interface,” it noted, adding that stronger authentication and notification norms can help curb misleading offers.

The platform has shared the findings with RBI, NPCI and the Central Consumer Protection Authority, calling for a broader mandate requiring all digital platforms to eliminate dark patterns.