Fintech firm PhonePe has gone live with the UPI LITE feature on its app, allowing users to initiate low-value payments under Rs 200.
The feature can be used with a single tap in UPI LITE accounts without entering a PIN, a passkey.
The transaction is processed directly by debiting the on-device UPI LITE balance without involving the customers’ banks’ (re- mitter bank) core banking systems in real-time.
This development makes transactions more seamless and even faster than regular UPI transactions while also increasing the success probability of the transaction.
“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,” said Rahul Chari, co-founder and chief technology officer of Phonepe.