PhonePe has gone live with the UPI LITE feature on its app. The feature allows users to initiate low-value payments under ₹200, with a tap from their UPI LITE account without entering a PIN.
faster transaction
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 is expected to make UPI transactions faster and also increase the success probability of the transaction.
The feature operates through an ‘on-device’ balance that facilitates much faster real-time payment solutions for low-value transactions such as groceries, and transit.
Users can load up to ₹2,000 in their LITE account and make transactions of up to ₹200 or less in one go. This also results in decluttering bank statements/passbooks with small-value transactions, as the transactions would only be visible in the LITE account and not in the bank statement.
digital payments
Speaking on the announcement, Rahul Chari, Co-founder, and Chief Technology Officer at PhonePe, said, “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. 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. UPI Lite also paves the way to introduce use cases that need payment execution without network connectivity making it one of the most exciting launches from NPCI in recent times. This is a crucial step towards increasing the adoption of digital payments for users across India, further strengthening a cashless economy. We are optimistic that India will embrace the feature for faster and hassle-free low- value payments.”