New Delhi: PhonePe, one of India’s leading payment platforms, has announced that it has launched the UPI Lite feature on its app. With this feature, users can now initiate low-value payments of up to Rs 200 without entering a personal identification number (PIN). This move is in response to the launch of UPI Lite by Reserve Bank of India governor Shaktikanta Das in September 2022, with the aim of simplifying low-value UPI payments and making them faster.
The transactions are processed directly by debiting the on-device wallet balance without involving banks in real time. This makes transactions seamless and faster than regular UPI transactions while also increasing the probability of success for a transaction. To activate the feature, users need to load up to Rs 2,000 into their Lite account, which is debited from their bank account. Once this is done, users can make transactions of up to Rs 200 or less in one go.
The UPI Lite feature on PhonePe is expected to increase the convenience of low-value transactions, making them faster and simpler. Users will also receive a daily SMS from their bank containing the history of UPI Lite transactions carried out during the day.
This move by PhonePe is a significant step towards further digitalizing payments in India. As UPI payments continue to gain popularity, the UPI Lite feature is expected to make low-value transactions even more accessible to users. With the convenience of not having to enter a PIN for low-value transactions, the UPI Lite feature is likely to increase the overall user experience.
In conclusion, PhonePe’s launch of the UPI Lite feature on its app is a welcome move that simplifies low-value UPI payments and makes them faster. The feature allows users to initiate transactions of up to Rs 200 without entering a PIN, making the process more convenient. This is a significant step towards digitalizing payments in India and is expected to increase the popularity of UPI payments even further.