Hidden risks of UPI Autopay: Nykaa AVP’s LinkedIn post sparks debate about free trials

Lokesh Ahuja, AVP at Nykaa, has shared a cautionary story on LinkedIn. He recently taught his mother how to use UPI payments. He came across something that rang an alarm bell.

Scrolling through her phone later, Ahuja spotted several AutoPay mandates. She unknowingly subscribed to multiple services through free trials. These offered zero cost during the initial 30-day period. However, they automatically charged users afterwards unless cancelled promptly.

“And most people never notice a ₹79 deduction. Because it quietly disappears inside an account statement with a hundred other UPI transactions. That's the real product behind a free trial. Not the first free month,” he wrote.

Lokesh Ahuja reflected on shifting parental concerns across generations. Parents once worried about children crossing roads safely. Now, children worry about their parents navigating the internet safely instead.

“Strange how our parents once worried about us crossing the road. Now we worry about them crossing the internet,” he wrote.

He later added, “Earlier, the biggest risk was buying the wrong thing. Today, it's agreeing to something you didn't fully understand. AutoPay mandates, app permissions, location access, recurring subscriptions.”

According to Ahuja, they're all “tiny decisions” made in seconds. However, such decisions may trigger something for a longer period.

“Digital literacy is no longer just about knowing how to use technology. It's also about knowing what you've agreed to,” he added.

Social Media Reaction

Lokesh Ahuja's LinkedIn post about hidden AutoPay mandates sparked wide engagement. One user agreed, calling free trials a “silent money drain” nationwide.

Another user raised similar concerns regarding debit card charges.

“Similarly, how many know that all banks provide debit cards and NOT the ATM cards, just because ATM cards are free, while Debit cards get charged about 800 to 1000 per annum. This is a pure theft, as over 60% of people use Debit Cards as ATM Cards only - they never do online transactions using Debit cards,” the user wrote.

One user noted that payment pages would often redirect users to AutoPay. She calls it the “worst part” of the transaction.

According to one user, people often notice deductions too late. “Even when people do notice, it's only when the transaction for the next month has already happened,” the user wrote.

One user suggests automating reminders before trial periods actually end. Another user stresses the shift in generational trust around financial transactions.

“The generation before us, our parents, worked on trust. You genuinely believed people and transacted. Our generation has grown up with mistrust. We are always looking around to see who will take us for a ride,” the user added.