UPS Launched PIN-Based Delivery for Secure Shipping

E-commerce merchants can now add a security layer to high-value shipments for a flat per-package fee.

Updated on Oct. 7, 2026 in Remote Work

Bold flat-color editorial illustration showing a stylized cardboard box, representing secure delivery verification. — UPS has introduced a PIN-based delivery verification service, allowing businesses to require recipient authentication for high-value shipments to prevent theft. AI Illustration. Upload story photo >

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Is paying extra for secure delivery services worth the added cost to you?

UPS has introduced a new security feature called Protected Delivery that requires recipients to provide a PIN to the driver upon arrival. The service functions as an add-on option for businesses shipping sensitive or high-value items.

Why it matters

This add-on provides a verifiable delivery mechanism to mitigate losses from package theft or misdelivery. By formalizing a PIN requirement, businesses can increase customer trust when shipping sensitive goods without overhauling their existing logistics processes.

The new Protected Delivery add-on costs $10.70 per package. It is currently available as a bolt-on feature for existing UPS shipping options.

The players

UPS

A global logistics and package delivery company headquartered in Sandy Springs, known for its extensive parcel network and supply chain services.

The details

The system relies on a PIN generated either by the shipper or UPS, which is then provided to the recipient. To finalize the delivery, the recipient must present this PIN directly to the driver, ensuring the package reached the intended party. This process forces a change in the hand-off protocol, requiring the recipient to be present and prepared with the code at the time of transit.

Wednesday: UPS announced the new Protected Delivery service.

Market Landscape

This service addresses the growing industry-wide challenge of last-mile package theft. It reflects a broader shift toward offering premium, fee-based security features to mitigate loss risk for e-commerce businesses.

Business owners should calculate whether the $10.70 surcharge is justifiable for their specific product margin and loss-prevention needs. Evaluate your current shrinkage rates to determine if this service acts as a cost-effective insurance policy compared to standard delivery.

The takeaway

The security layer shifts the onus of delivery verification to the recipient, reducing the potential for claims related to misdelivered items. Track the success of this add-on in your own logistics pipeline by comparing the $10.70 fee against your historical costs of replacing stolen or lost shipments.