• Source:JND
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PHONEPE, a popular payments platform in India, has introduced the UPI Lite feature within the app. It comes in handy to process transactions of below Rs 200. For the unversed, PhonePe's online payments rival, Paytm, announced the launch of UPI Lite in February 2023.

The Walmart-owned digital transactions app added that UPI Lite supports all "major banks" and will be accepted by UPI merchants and Quick Response (QR) codes across India. Here are the benefits that make the newly announced feature a worth-trying option if you use the app.

Benefits

Declutters Bank Passbook - Small amount transactions made through UPI Lite do not reflect in the bank passbook of the customer.

Easier small value transfers - The transaction carried out via UPI Lite for small amounts under Rs 200 does not require PIN authentication. This simplifies the process to some extent.

Faster transfers - UPI lite does not add load to Remitter Bank CBS, as per NPCI. The payment transfer is not screened by the customer's bank and is deducted from the on-device UPI Lite balance. It helps in faster transaction processing.

How to use it?

Step 1: Head to the PhonePe app

Step 2: Find the UPI Lite option on the home screen and enable it

Step 3: Read and agree to the terms of use

Step 4: Enter the amount to transfer to your UPI Lite from your bank account

Step 5: Enter your pin. UPI Lite will be ready to use

A PhonePe user can add up to Rs 2000 at once. Users will receive an SMS to keep track of transactions carried out by UPI Lite in a day.

"UPI Lite is a core part of the UPI stack offering, with a vision to enhance the users' digital payments experience for frequent and low-ticket size spends. Small-ticket transactions make up a significant volume of the overall UPI payments, and UPI LITE will make them quicker and convenient, without putting a strain on the existing UPI infrastructure," Rahul Chari, co-founder and CTO, PhonePe said.