UPI LITE account does not involve any KYC authentication. (Representative image)
PhonePe users can instantly activate the feature
The digital payment platform PhonePe announced on Wednesday that the UPI LITE functionality is going live on its application. It is supported by all major banks and is accepted at all UPI and QR merchants nationwide. The feature works through an “on-device” balance which facilitates much faster real-time payment solutions for low-value transactions such as groceries, public transit, even during the busiest time slots.
Benefits for PhonePe users
The UPI LITE feature allows users to initiate low value payments under Rs. 200, with just one click from their UPI LITE account without entering a PIN code. The transaction is processed directly by debiting the UPI LITE balance on the device without involving the main banking systems of the customers’ banks (remitting bank) in real time. This makes transactions more transparent and even faster than regular UPI transactions while increasing the likelihood of the transaction succeeding.
How to activate the PhonePe UPI LITE feature?
PhonePe users can instantly activate the feature on their PhonePe app through a simple process that involves no KYC authentication and create a UPI LITE account. Users can load up to Rs. 2000 into their LITE account and transact up to Rs. 200 or less in one go.
To check transaction history, users will receive a daily SMS containing the history of UPI LITE transactions made during the day from their bank. This also results in a decluttering of bank statements/passbooks with low value transactions, as the transactions would only be visible on the LITE account and not on the bank statement.
Rahul Chari, Co-Founder and Chief Technology Officer, PhonePe, said, “UPI LITE is a core part of UPI’s stack offering, with a vision to enhance users’ digital payment experience for frequent spending. and inexpensive. Small transactions represent a large volume of all UPI payments, and UPI LITE will make them faster and more convenient, without straining existing UPI infrastructure.”
“UPI Lite also paves the way for the introduction of use cases that require payments to be executed without network connectivity, making it one of NPCI’s most exciting launches in recent times. ‘a crucial step towards increasing the adoption of digital payments for users across India, thereby bolstering a cashless economy. We are confident that India will embrace this feature for faster and more efficient low-value payments. hassle-free,” added Chari.
Here is how PhonePe users can enable UPI Lite on the PhonePe app:
- Open the PhonePe app
- On the app home screen, users will have the option to enable UPI LITE
- The user enters the amount to be added in UPI LITE and selects the bank account
- The user enters the UPI PIN code and the UPI Lite account is activated successfully.
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