The company said that UPI Lite on PhonePe is supported by all major banks and is accepted at all UPI merchants and QRs across the country. Users can activate the feature on their PhonePe app through a simple process that doesn’t involve any KYC authentication and create a UPI Lite account.
“This is a crucial step towards increasing the adoption of digital payments for users across India, further strengthening a cashless economy,” said Rahul Chari, Co-founder, and Chief Technology Officer at PhonePe.
Paytm launched UPI Lite feature on its app in March this year.
What is UPI Lite?
UPI Lite was launched by the Reserve Bank of India (RBI) in September last year and the service is also controlled by the National Payments Corporation of India (NPCI).
How does it help users?
UPI Lite is aimed at offering a better digital payments experience by enabling users to carry out small-value UPI transactions instantly. Users can load up to Rs 2,000 in their LITE account and make transactions of up to Rs 200 in one go without having to punch-in their PIN.
The transaction is processed directly by debiting the on-device UPI Lite balance without involving the customers’ banks’ core banking systems. It is helpful in transactions made for groceries, transit, and others.
Users will also receive a daily SMS containing the history of UPI Lite transactions carried out during the day from their bank. This will help in decluttering bank statements/passbooks with small-value transactions. These transactions will only be visible in the LITE account and not in the bank statement.
How to activate UPI Lite on PhonePe app:
- Open the PhonePe app
- On the home screen of the app, users will get the option to enable UPI LITE
- User enters the amount to add it in UPI LITE and selects the bank account
- User enters UPI Pin and the UPI Lite account is enabled successfully.
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