Paytm’s Focus: UPI Lite for Low-Value Transactions
On Monday, One97 Communications, the parent company of Paytm, announced its focus on the UPI Lite wallet to cater to users who prefer this feature for low-value transactions.
This shift in focus towards the Unified Payment Interface Lite feature comes after the Reserve Bank of India (RBI) took action against the Payments Bank, barring it from accepting fresh credits in its mobile wallets after March 15 of this year.
A spokesperson for Paytm highlighted the importance of the wallet as a fundamental payment tool for everyday use, enabling quick transactions at local stores, street vendors, and for regular purchases. Unified Payment Interface Lite enhances this experience, facilitating faster transactions while maintaining clarity in bank statements.
Currently, customers with funds in their Paytm wallet can withdraw or transfer them to another wallet or bank account up to the available balance. However, they cannot add more money to the Paytm wallet once the balance is depleted, in compliance with RBI directives.
The UPI Lite wallet operates differently from Paytm’s in-house wallet operations, focusing on processing low-value transactions below Rs 500, according to the National Payments Corporation of India (NPCI) website. This feature is particularly useful for small-ticket transactions such as grocery shopping and commute fares.
Users of the UPI Lite feature can add up to Rs 2,000 to their wallet twice a day, totaling a daily capacity of Rs 4,000, and conduct transactions without requiring a PIN. This wallet is integrated within fintech apps like Paytm and is part of their native offerings.
Other prominent fintech companies offering the UPI Lite solution include PhonePe, Google Pay, Navi, and Groww, among others. Launched in September 2022, UPI Lite operates on existing UPI ecosystem protocols for mobile phones, ensuring standardization, compliance, and widespread acceptance.
