Paytm UPI Lite Goes Live; Promises ‘Lightning-Fast’ Payments

Paytm Payments Bank Limited (PPBL) has launched UPI Lite, a feature that allows users to make small payments without hassles. With online payments, there's always a small chance that transactions won't go through. Paytm promises its newest feature will never fail, especially during peak hours.

Paytm UPI Lite: How it Works

Paytm claims it is currently the only platform to offer UPI Lite payments. Enabled by the National Payments Corporation of India (NPCI), UPI Lite allows customers to make low-value UPI transactions.

With Paytm UPI Lite, users can make small payments of up to ₹200 at a time without entering a PIN each time. They can also transfer their UPI balance back into their bank accounts without any hassles.

To encourage more users to adopt Paytm Lite, the company is offering ₹100 cashback to users who activate and add a minimum amount of ₹1,000 as a balance to the feature.

Users can load up to ₹2,000 twice a day into their UPI Lite wallet. Since no limit is enforced on the number of small-value bank transactions yet, customers can make as many UPI payments as they want.

This feature will help declutter bank statements with a single money transfer entry made in the bank account. To maintain a record of transactions, customers will get a daily SMS with a list of all UPI Lite transactions made the day before.

How UPI Lite Will Improve Low-Value Transactions

NPCI claims that over 50 percent of all UPI transactions are less than ₹200. NPCI COO Praveena Rai explains how UPI Lite will streamline small-value transactions, "The introduction of UPI LITE will successfully provide a distributed way of authorizing low-value transactions, moving them away from core banking."

Rai adds, "This shall further improve the success rate of transactions, enhancing the user experience and taking us one more step closer to processing a billion transactions a day on the UPI platform."

Paytm UPI Lite: Banks Supported

As of now, nine banks support Paytm UPI Lite. These include Kotak Mahindra Bank, Canara Bank, HDFC Bank, State Bank of India, Union Bank of India, Central Bank of India, Indian Bank, Punjab National Bank, and Utkarsh Small Finance Bank.

Source: Paytm blog