 "PhonePe")
Fintech firm PhonePe said on Wednesday it has gone live with the UPI LITE feature on its app, allowing users to initiate low-value payments under Rs 200.
The feature can be used with a single tap in UPI LITE accounts without entering a PIN, a passkey. The transaction is processed directly by debiting the on-device UPI LITE balance without involving the customers’ banks’ (remitter bank) core banking systems in real-time. This makes transactions more seamless and even faster than regular UPI transactions while also increasing the success probability of the transaction.
“UPI LITE is a core part of the UPI stack offering, with a vision to enhance the users’ digital payments experience for frequent and low-ticket size spends,” said Rahul Chari, co-founder and chief technology officer of PhonePe.
“Small-ticket transactions make up a significant volume of the overall UPI payments, and UPI LITE will make them quicker and convenient, without putting a strain on the existing UPI infrastructure,” he said.
UPI LITE on PhonePe, which is owned by USA’s Walmart, is supported by all major banks and is accepted at all UPI merchants and QRs across the country. The feature operates through an ‘on-device’ balance that facilitates much faster real-time payment solutions for low-value transactions such as groceries, transit, even during the busiest time slots.
Users can instantly activate the feature on their PhonePe app through a simple process without KYC authentication and create a UPI LITE account. Users can put up to Rs 2000 in their LITE account and make transactions of up to Rs 200 or less in one go. Users will receive a daily SMS containing the history of UPI LITE transactions carried out from their bank accounts. This will help in uncluttered bank statements and passbooks, as the transactions would only be visible in LITE accounts.
