Monzo has launched an industry-first "Undo Payments" feature that allows customers to cancel mistaken bank transfers within a customisable 10-60 second window.
The UK's leading digital bank, which now serves more than 12 million customers, introduced the tool to give both personal and business users extra confidence when sending money.
The feature addresses a common problem where people accidentally send funds to the wrong recipient or transfer incorrect amounts.
New research from Monzo reveals the scale of this problem, with almost one in three Brits (30 per cent) having sent money to the wrong person or incorrect amount in the past year.
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These mistakes have proven costly, with approximately £825million sent by mistake during this period.
Almost a third (32 per cent) of people have been left out of pocket due to wrongly sent payments.
Retrieving mistakenly sent funds from any bank is typically a lengthy and frustrating process, with no guarantee of recovery.
The new tool works by creating a brief window during which customers can cancel a transfer if they notice an error.
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Monzo's research shows this feature aligns perfectly with user behaviour, as over three-quarters of Brits who sent a wrong payment (78 per cent) realised their mistake within just one minute.
Common errors include adding an extra zero to an amount or selecting the wrong recipient from a contacts list.
The Undo Payments feature is designed to transform what would typically be a moment of panic into a sense of relief.
Andy Sacre, Head of Payments at Monzo said: "We know it's important to be able to send money quickly and easily - but we also know that mistakes can happen, whether that's sending the wrong amount to someone or paying the wrong person.
"In another industry-first, we're bringing the best of banking and technology together to solve that problem for our customers, with this simple yet powerful feature that ensures they can send money with Monzo more confidently and safely than ever before."
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GETTYThe research further revealed that over two-thirds of Brits (68 per cent) claim simple typing errors, such as adding a zero, were responsible for sending incorrect payments.
Customer confidence would significantly improve with such a feature, as 58 per cent of Brits stated they would feel more confident or relaxed making payments if they knew they could undo them
In practice, customers looking to rectify a payment mistake will see a default 15-second timer appear on the payment confirmation screen with an option to undo the payment.
They will either tap the "Undo Payment" button there, or from the Home screen or payment detail screen before the timer runs out.
Once the user hits the button, Monzo stops the payment from being sent. Customers can change the Undo Payments timer, choosing between the following lengths of time to undo a payment, or turn it off altogether.
