Digital payment methods in India are about to become more secure with the introduction of custom UPI IDs on Google Pay and Paytm. Previously, UPI IDs were primarily linked to mobile numbers, which raised privacy concerns. This new feature allows users to create personalized UPI IDs, masking their mobile numbers and enhancing transaction security. This will build more confidence in digital payment systems.
**Key features of the update:**
Most UPI IDs are directly connected to phone numbers, potentially exposing users to cyber threats. The ability to create customized UPI IDs will conceal users’ mobile numbers, resulting in safer transactions. This is a positive step toward increasing trust in the digital payment environment.
**How to create a new UPI ID on Paytm:**
* Paytm simplifies the process of creating a custom UPI ID for its users.
* Start by opening the Paytm app and navigating to the profile section, and then selecting UPI & Payment settings.
* Here, you’ll find a list of all your connected accounts and IDs.
* Click on ‘Create a new UPI ID’.
* Then, create a new ID with a combination of letters and numbers.
* You can also set up a backup UPI ID to prevent payment failures.
**Custom UPI on GPay:**
Google Pay offers a similar functionality, enabling users to utilize custom UPI IDs instead of their phone numbers. This update strengthens privacy measures, providing users with a more convenient and secure transaction experience.
**Upcoming changes to UPI rules:**
The National Payments Corporation of India (NPCI) has updated the UPI rules, discontinuing the P2P Collect Request system from October 1, 2025. This change prevents users from sending or receiving Collect Requests via UPI, allowing only direct transfers. This adjustment addresses the misuse of the Collect Request feature by fraudsters, who sometimes tricked users into approving these requests, resulting in unauthorized deductions from their accounts.