Monzo Launches New ‘Undo Payments’ Feature to Mitigate Payment Errors and Fraud

Monzo, a UK-based bank, has rolled out a new tool called ‘Undo Payments.’ This feature allows users to cancel a bank transfer within 10 to 60 seconds after initiating it. The configurable delay period provides time for the sender to reconsider or halt the transaction.

A study by Monzo revealed that approximately 30% of UK adults have made payment errors in the past year, with over three-quarters realizing their mistake within a minute. This new feature aims to address these common issues and provide users with an additional layer of security.

Implementing Real-Time Safeguards for Digital Banking

The ‘Undo Payments’ function acts as a holding period after a transfer is authorized. During this time, users can directly reverse the transaction from various screens including the payment confirmation screen, home screen, or specific transaction detail page.

The default setting offers a 15-second window for reversals, but users can customize it to be 10, 30, or 60 seconds. According to Monzo’s findings, simple typing errors, such as an extra zero, account for nearly two-thirds of misdirected payments.

For those who do send money in error, recovering the funds can often be challenging and uncertain. Approximately one-third of individuals who mistakenly sent money were unable to recover the full amount. Monzo’s new feature is designed to help mitigate both human errors and potential fraud by providing users a moment to reconsider their actions.

Monzo representatives highlighted that this development is part of their strategy to integrate real-time safeguards into digital banking services. They emphasize that while the ability to send money instantly is crucial, there should also be mechanisms for correcting such errors when they occur.