"to Pay or Not to Pay?": Understanding User Decision-Making and Influence of Nudges in UPI Apps

Abstract

In response to increasing social engineering attacks, Unified Payments Interface (UPI) apps have implemented a variety of nudges to deter users from responding to fraudulent payment requests. We conducted a scenario-based semi-structured interview study with 46 Indian participants who tested the impact of various user interface nudges to help them discern a mixture of fraudulent and non-fraudulent payment scenarios. Our study revealed a multi-stage de cision-making process: participants relied on a digital literacy and security concern-based risk assessment, which is further influenced by their trust in the recipient as well as the perceived need of the financial transaction. Our results demonstrate that while most nudges help to combat fraudulent transactions, participants perceived "badges"(a nudge signaling the trustworthiness of the receiver) to be most effective in combating fraud. We conclude with concrete recommendations for current and future UPI developers.