New UPI Update: Personalized UPI IDs Launch on Paytm & Google Pay for Safer Payments

New UPI Update: Personalized UPI IDs Arrive on Paytm and Google Pay for Safer Payments

As India’s digital payment landscape continues to evolve rapidly, the Unified Payments Interface (UPI) ecosystem is all set for a significant upgrade.

New UPI Update: Personalized UPI IDs Launch on Paytm

In 2025, two of the most popular UPI apps — Paytm and Google Pay — have rolled out a groundbreaking feature: personalized UPI IDs. This update not only redefines the way users create and share their payment IDs but also makes transactions safer and more user-friendly.

What Are Personalized UPI IDs?

A traditional UPI ID typically looks like a random string of alphanumeric characters, often appended by a bank or app’s domain (for example, yourname@okaxis or mobile@okhdfcbank). Personalized UPI IDs allow users to create a unique, easy-to-remember identifier for their UPI payments, much like choosing a social media handle or email ID.

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For instance, instead of a generic ID, users can now create something like “johnsmith@paytm” or “alice2025@okgoogle”, making it easier for friends, family, and merchants to remember and send money without errors.

Why Personalized IDs Matter

This new feature offers several advantages both from a user experience and security standpoint:

• Enhanced Safety: Personalized UPI IDs reduce the risk of sending money to incorrect recipients caused by typo errors in complicated IDs.

• Easy Identification: Recipients can verify the payer or payee more intuitively by connecting with a recognizable name or phrase in the UPI ID.

• Faster Transactions: No need to double-check complex IDs anymore, speeding up peer-to-peer and merchant payments.

• Brand Trust: Paytm and Google Pay enhance user confidence by giving them ownership of their payment ID, increasing transparency.

How to Create Your Personalized UPI ID on Paytm and Google Pay

Both Paytm and Google Pay have simplified the process for setting up your personalized UPI ID:

1. Open the App: Launch Paytm or Google Pay and navigate to the UPI section.

2. Select ‘Create Personalized ID’: Look for the option to create or edit your UPI ID, usually under profile or settings.

3. Choose Your ID: Enter a unique identifier that reflects your name, brand, or any preferred keyword (subject to availability).

4. Confirm and Link: Once approved, this personalized UPI ID links directly to your bank account.

This process usually takes just a few minutes, making it seamless for every user to upgrade their payment identity instantly.

Impact on Safer Payments and Fraud Prevention

The arrival of personalized UPI IDs on major platforms like Paytm and Google Pay is a landmark step towards safer digital payments in India. UPI transactions have been increasingly targeted by phishing and impersonation frauds. Before personalized IDs, fraudsters exploited the complexity of generic UPI IDs to dupe unsuspecting users.

With personalized IDs:

• Users can easily share their payment identities with trusted contacts or merchants.

• The clear, memorable format helps double-check the recipient before authorizing payments.

• Platforms can implement better verification algorithms and monitoring linked with personalized IDs, reducing possible fraud vectors.

Banks and regulators expect this initiative to significantly reduce UPI-related fraud cases in the coming months.

What This Means for Merchants and Businesses

For small businesses and merchants using UPI payment acceptance through Paytm or Google Pay, personalized UPI IDs offer a unique branding opportunity. They can:

• Create UPI IDs that match their shop or business names, improving brand recall.

• Provide customers with an easy-to-remember payment handle, easing checkout friction.

• Enhance trust by showing consistent and verified payment details, reassuring customers about transaction authenticity.

This could positively affect customer experience, helping businesses grow faster in an increasingly digital economy.

Future Outlook: Will Other UPI Apps Follow?

The latest UPI mandate encourages all payment apps to integrate personalized ID functionality to harmonize user experience across platforms.

Besides Paytm and Google Pay, apps like PhonePe, Amazon Pay, and BHIM are expected to introduce similar features soon.

Further, the National Payments Corporation of India (NPCI), which oversees UPI, is exploring advanced features tied to personalized IDs, such as instant verification badges and additional layers of authentication to beef up security.

Tips for Choosing Your Personalized UPI ID

When creating your personalized UPI ID, keep in mind:

• Choose something simple yet unique and easy to recall.

• Avoid generic terms or common names to reduce rejection due to duplication.

• Use alphanumeric characters where allowed, but avoid special symbols that may confuse payers.

• Reflect your personal or business brand for consistency.

Conclusion

The introduction of personalized UPI IDs on Paytm and Google Pay marks a new chapter in India’s digital payment revolution. This upgrade brings a blend of convenience, safety, and trust to millions of users and merchants.

If you haven’t created your personalized UPI ID yet, now is the perfect time to do so and experience a smarter and more secure way to make UPI payments.