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PhonePe goes live with UPI lite

May 04, 2023

PhonePe goes live with UPI lite
Payments major PhonePe announced on Wednesday that it has gone live with the UPI Lite feature on its app, allowing users to initiate low-value payments of up to ₹200 without entering a personal identification number (PIN).

UPI Lite was launched in September 2022 by Reserve Bank of India governor Shaktikanta Das to make low-value UPI payments faster and simpler.
 
These transactions are processed directly, by debiting the on-device wallet balance without involving banks in real-time, making transactions seamless and faster than regular UPI transactions. It also increases the probability of success for a transaction.
 
“UPI Lite on PhonePe 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,” PhonePe said in a statement.
 
PhonePe’s rival Paytm Payments Bank went live with the UPI Lite feature on its platform in February.
 
In the company’s statement on the announcement, Rahul Chari, cofounder and chief technology officer, PhonePe, said, “UPI Lite is a core part of the UPI stack offering, with a vision to enhance users’ digital payments experience for frequent and low-ticket-size spends. Small-ticket transactions make up a significant volume of overall UPI payments, and UPI LITE will make them quicker and convenient, without putting a strain on the existing UPI infrastructure.”
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