The 'Shield' Product from BharatPe Shields Users from Online Transaction Fraud

Nitin Konde, Varun Bhardwaj

Dec 6, 2024 — 2 min read

BharatPe Introduces ‘Shield’ for Enhanced Online Transaction Security

A fraud protection package called "Shield" was unveiled by fintech company BharatPe on 5 December. It provides coverage against digital frauds, including protection against fraudulent Unified Payments Interface (UPI) transactions. Users are now protected up to INR 5,000 from fraudulent digital transactions thanks to the new provision.

To get this protection, users will need to pay INR 19 a month. According to the business, users who use the fintech app for their first UPI transaction will get a complimentary 30-day fraud protection service. Similar fraud protection strategies are offered by other similar players such as Paytm.

What BharatPe Shield Offers?

Risks covered by BharatPe Shield include phishing scams, computer fraud, and unauthorised transactions brought on by lost phones. Through the app, chatbot, or a toll-free hotline, users may file claims and report fraud around the clock. For impacted users, this guarantees prompt response and resolution. In August 2024, BharatPe began its UPI service.

Users can pay utility bills in categories like electricity, gas and DTH, as well as conduct bank transfers, Scan and Pay and pay to UPI ID.

By providing its users with a fraud protection plan that secures their everyday transactions, the company is taking things a step further with BharatPe Shield. According to Nalin Negi, CEO of BharatPe, this endeavour demonstrates the company's dedication to rethinking the safe UPI experience for its clients and placing security at the centre of its products.

Three months have passed since BharatPe launched its UPI third-party application provider (TPAP) service, marking its entry into the consumer payments market. Android users may use the UPI TPAP service on the Play Store, and BharatPe has teamed up with Unity Bank to make this new service available.

Financial Dynamics of BharatPe

BharatPe's consolidated revenue from operations increased by 39% in October, from INR 1,029 Cr in FY23 to INR 1,426 Cr in FY24. BharatPe recently reached a settlement with its previous managing director, Ashneer Grover, ending the two-year legal struggle. So far, it has raised over $830 million in investment, with investors including Beenext, Ribbit Capital, and Peak XV.

Online Frauds are on the Rise in India

During the current fiscal year (2024-25/FY25) to September, 632,000 incidences of UPI fraud have resulted in losses for Indians totalling INR 485 crore.

A total of INR 2,145 crore has been lost as a result of UPI-related frauds from 2022–2023, with 2.7 million occurrences reported. 1.34 million fraud cases of INR 1,087 crore in losses were reported in 2023–24 (FY24) alone.

As the number of users and total transactions handled on the real-time payments system increase, so does the number of frauds involving UPI.