PhonePe, the Walmart-owned fintech firm, has announced the launch of its UPI Lite feature, which enables users to initiate low-value payments of up to Rs 200 without using a PIN. The feature is supported by all major banks and is accepted by all UPI merchants and QR codes throughout India. The offering is expected to provide much faster real-time payment solutions for small transactions such as groceries, transit, and other low-value payments. PhonePe's Co-founder and Chief Technology Officer Rahul Chari said that the small-ticket transactions make up a significant volume of the overall UPI payments and that UPI Lite will make them quicker and more convenient without putting a strain on the existing UPI infrastructure.
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Moreover, the UPI Lite feature also paves the way for use cases that require payment execution without network connectivity, making it one of the most exciting launches from NPCI (National Payments Corporation of India) in recent times. The feature is designed by NPCI and was launched by the Reserve Bank of India in September last year. The NPCI is an umbrella organization for all retail payment systems in India and aims to encourage digital payments and boost the country's cashless economy. With the introduction of UPI Lite, PhonePe is making a significant contribution to the adoption of digital payments for users across India.
In recent years, India has seen tremendous growth in digital payments, and the trend is expected to continue. As the country continues to move towards a cashless economy, companies like PhonePe are innovating to make digital transactions more accessible and convenient for users. The introduction of the UPI Lite feature is a crucial step towards increasing the adoption of digital payments, especially for small transactions. PhonePe is one of the leading players in India's digital payments market, and the new feature is expected to help the company retain its market share and attract new users.