diff --git a/app/components/Onboarding/NewWalletPassword.js b/app/components/Onboarding/NewWalletPassword.js
index 1ab89d19..b530b2e9 100644
--- a/app/components/Onboarding/NewWalletPassword.js
+++ b/app/components/Onboarding/NewWalletPassword.js
@@ -4,31 +4,19 @@ import Isvg from 'react-inlinesvg'
 import eye from 'icons/eye.svg'
 import styles from './NewWalletPassword.scss'
 
-class NewWalletPassword extends React.Component {
-  constructor(props) {
-    super(props)
-
-    this.state = {
-      inputType: 'password',
-      confirmPassword: ''
-    }
-  }
-
-  render() {
-    const { createWalletPassword, updateCreateWalletPassword } = this.props
-    const { inputType, confirmPassword } = this.state
-
-    const toggleInputType = () => {
-      const newInputType = inputType === 'password' ? 'text' : 'password'
-
-      this.setState({ inputType: newInputType })
-    }
-
+const NewWalletPassword = ({
+  createWalletPassword,
+  createWalletPasswordConfirmation,
+  showCreateWalletPasswordConfirmationError,
+
+  updateCreateWalletPassword,
+  updateCreateWalletPasswordConfirmation
+}) => {
     return (
       <div className={styles.container}>
         <section className={styles.input}>
           <input
-            type={inputType}
+            type='password'
             placeholder='Password'
             className={styles.password}
             value={createWalletPassword}
@@ -38,21 +26,24 @@ class NewWalletPassword extends React.Component {
 
         <section className={styles.input}>
           <input
-            type={inputType}
+            type='password'
             placeholder='Confirm Password'
-            className={styles.password}
-            value={confirmPassword}
-            onChange={event => this.setState({ confirmPassword: event.target.value })}
+            className={`${styles.password} ${showCreateWalletPasswordConfirmationError && styles.error}`}
+            value={createWalletPasswordConfirmation}
+            onChange={event => updateCreateWalletPasswordConfirmation(event.target.value)}
           />
+          <p className={`${styles.errorMessage} ${showCreateWalletPasswordConfirmationError && styles.visible}`}>Passwords do not match</p>
         </section>
       </div>
     )
-  }
 }
 
 NewWalletPassword.propTypes = {
   createWalletPassword: PropTypes.string.isRequired,
-  updateCreateWalletPassword: PropTypes.func.isRequired
+  createWalletPasswordConfirmation: PropTypes.string.isRequired,
+  showCreateWalletPasswordConfirmationError: PropTypes.bool.isRequired,
+  updateCreateWalletPassword: PropTypes.func.isRequired,
+  updateCreateWalletPasswordConfirmation: PropTypes.func.isRequired
 }
 
 export default NewWalletPassword
diff --git a/app/components/Onboarding/NewWalletPassword.scss b/app/components/Onboarding/NewWalletPassword.scss
index 1fd5fd6f..66aa30c5 100644
--- a/app/components/Onboarding/NewWalletPassword.scss
+++ b/app/components/Onboarding/NewWalletPassword.scss
@@ -22,3 +22,14 @@
   text-shadow: none;
   -webkit-text-fill-color: initial;
 }
+
+.errorMessage {
+  color: $red;
+  margin-top: 10px;
+  font-size: 10px;
+  visibility: hidden;
+
+  &.visible {
+    visibility: visible;
+  }
+}
diff --git a/app/components/Onboarding/Onboarding.js b/app/components/Onboarding/Onboarding.js
index 631a721b..273d2781 100644
--- a/app/components/Onboarding/Onboarding.js
+++ b/app/components/Onboarding/Onboarding.js
@@ -78,7 +78,12 @@ const Onboarding = ({
             title='Welcome!'
             description='Looks like you are new here. Set a password to encrypt your wallet. This password will be needed to unlock Zap in the future' // eslint-disable-line
             back={null}
-            next={() => changeStep(5)}
+            next={() => {
+              // dont allow the user to move on if the confirmation password doesnt match the original password
+              if (newWalletPasswordProps.showCreateWalletPasswordConfirmationError) { return }
+                
+              changeStep(5)
+            }}
           >
             <NewWalletPassword {...newWalletPasswordProps} />
           </FormContainer>
diff --git a/app/containers/Root.js b/app/containers/Root.js
index b5bffa74..d0d9f40d 100644
--- a/app/containers/Root.js
+++ b/app/containers/Root.js
@@ -15,6 +15,7 @@ import {
   startLnd,
   createWallet,
   updateCreateWalletPassword,
+  updateCreateWalletPasswordConfirmation,
   updateAezeedPassword,
   submitNewWallet,
   onboardingSelectors,
@@ -30,6 +31,7 @@ const mapDispatchToProps = {
   updateAlias,
   updatePassword,
   updateCreateWalletPassword,
+  updateCreateWalletPasswordConfirmation,
   updateAezeedPassword,
   setAutopilot,
   changeStep,
@@ -50,6 +52,7 @@ const mapStateToProps = state => ({
 
   syncPercentage: lndSelectors.syncPercentage(state),
   passwordIsValid: onboardingSelectors.passwordIsValid(state),
+  showCreateWalletPasswordConfirmationError: onboardingSelectors.showCreateWalletPasswordConfirmationError(state),
   reEnterSeedChecker: onboardingSelectors.reEnterSeedChecker(state)
 })
 
@@ -98,7 +101,10 @@ const mergeProps = (stateProps, dispatchProps, ownProps) => {
 
   const newWalletPasswordProps = {
     createWalletPassword: stateProps.onboarding.createWalletPassword,
-    updateCreateWalletPassword: dispatchProps.updateCreateWalletPassword
+    createWalletPasswordConfirmation: stateProps.onboarding.createWalletPasswordConfirmation,
+    showCreateWalletPasswordConfirmationError: stateProps.showCreateWalletPasswordConfirmationError,
+    updateCreateWalletPassword: dispatchProps.updateCreateWalletPassword,
+    updateCreateWalletPasswordConfirmation: dispatchProps.updateCreateWalletPasswordConfirmation
   }
 
   const newAezeedPasswordProps = {
diff --git a/app/reducers/onboarding.js b/app/reducers/onboarding.js
index 73f64f16..36921f67 100644
--- a/app/reducers/onboarding.js
+++ b/app/reducers/onboarding.js
@@ -57,10 +57,10 @@ export function updateCreateWalletPassword(createWalletPassword) {
   }
 }
 
-export function updateCreateWalletPasswordConfirmation(updateCreateWalletPasswordConfirmation) {
+export function updateCreateWalletPasswordConfirmation(createWalletPasswordConfirmation) {
   return {
     type: UPDATE_CREATE_WALLET_PASSWORD_CONFIRMATION,
-    updateCreateWalletPasswordConfirmation
+    createWalletPasswordConfirmation
   }
 }
 
@@ -172,7 +172,7 @@ const ACTION_HANDLERS = {
   [UPDATE_ALIAS]: (state, { alias }) => ({ ...state, alias }),
   [UPDATE_PASSWORD]: (state, { password }) => ({ ...state, password }),
   [UPDATE_CREATE_WALLET_PASSWORD]: (state, { createWalletPassword }) => ({ ...state, createWalletPassword }),
-  [UPDATE_CREATE_WALLET_PASSWORD_CONFIRMATION]: (state, { createWalletConfirmation }) => ({ ...state, createWalletConfirmation }),
+  [UPDATE_CREATE_WALLET_PASSWORD_CONFIRMATION]: (state, { createWalletPasswordConfirmation }) => ({ ...state, createWalletPasswordConfirmation }),
   [UPDATE_AEZEED_PASSWORD]: (state, { aezeedPassword }) => ({ ...state, aezeedPassword }),
   [UPDATE_SEED_INPUT]: (state, { inputSeedObj }) => {
     return {
@@ -206,6 +206,10 @@ const ACTION_HANDLERS = {
 
 const onboardingSelectors = {}
 const passwordSelector = state => state.onboarding.password
+
+const createWalletPasswordSelector = state => state.onboarding.createWalletPassword
+const createWalletPasswordConfirmationSelector = state => state.onboarding.createWalletPasswordConfirmation
+
 const seedSelector = state => state.onboarding.seed
 const seedInputSelector = state => state.onboarding.seedInput
 
@@ -214,6 +218,12 @@ onboardingSelectors.passwordIsValid = createSelector(
   password => password.length >= 8
 )
 
+onboardingSelectors.showCreateWalletPasswordConfirmationError = createSelector(
+  createWalletPasswordSelector,
+  createWalletPasswordConfirmationSelector,
+  (pass1, pass2) => pass1 !== pass2 && pass2.length > 0
+)
+
 onboardingSelectors.reEnterSeedChecker = createSelector(
   seedSelector,
   seedInputSelector,
@@ -238,7 +248,7 @@ const initialState = {
   
   // wallet password. password used to encrypt the wallet and is required to unlock the daemon after set
   createWalletPassword: '',
-  createWalletConfirmation: '',
+  createWalletPasswordConfirmation: '',
   creatingNewWallet: false,
 
   // seed password. this is optional and used to encrypt the seed