PhonePe goes live with UPI Lite

Payments main PhonePe introduced on Wednesday that it has gone dwell with the UPI Lite function on its app, permitting customers to provoke low-value funds of as much as Rs 200 with out coming into a private identification quantity (PIN).

UPI Lite was launched in September 2022 by Reserve Bank of India governor Shaktikanta Das to make low-value UPI funds quicker and easier.

These transactions are processed instantly, by debiting the on-device pockets steadiness with out involving banks in real-time, making transactions seamless and quicker than common UPI transactions. It additionally will increase the likelihood of success for a transaction.

ET had in February reported that two main third-party platforms — Paytm and PhonePe — are in superior phases of UPI Lite integration.

“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 stated in an announcement.

PhonePe’s rival Paytm Payments Bank went dwell with the UPI Lite function on its platform in February.

In the corporate’s assertion on the announcement, Rahul Chari, cofounder and chief know-how officer, PhonePe, stated, “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.”How to activate UPI Lite
Users can activate the function on their PhonePe app by loading as much as Rs 2,000 into their Lite account — it’s debited from their checking account — and might make transactions of as much as Rs 200 or much less in a single go.

Users will obtain a every day SMS containing the historical past of UPI Lite transactions carried out in the course of the day from their financial institution.

This helps in decluttering financial institution statements from small-value transactions, because the transactions will solely be seen within the LITE account and never within the financial institution assertion, the place solely the quantity first loaded into the pockets is debited.

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