UPI Lite from Paytm will allow faster payments without PIN code

Indian fintech Paytm Payments Bank Limited (PPBL) will be the first Indian bank to integrate UPI Lite functionality. This initiative is expected to accelerate the adoption of digital payments in India and consolidate Paytm's position as the country's leading digital payments company.

FACTS

• UPI Lite was introduced by National Payments Corporation of India (NPCI) in September 2022

• Paytm UPI Lite will allow users to make low value transactions of up to Rs 200 (approx. 2.30 euros) faster and without the need to use the UPI PIN via the Paytm app.

• Users can top up their UPI Lite wallet by adding up to Rs 2,000 twice a day, totaling up to a daily limit of Rs 4,000.

• There is no limit to the number of transactions.

• How to pay with UPI Lite:

  • Scan a QR code or select a contact you wish to pay

  • Enter the amount

  • Press the "Pay Securely" button at the bottom

  • Your set amount will be sent instantly - no UPI PIN code will be required

CHALLENGES

• Simplify low-value transactions : NPCI and RBI's UPI Lite is intended to facilitate digital transactions in the country and de-clutter bank accounting. This is because these small value transactions will only be reflected in the Paytm Balance and History section. According to official NPCI data, half of the daily UPI transactions in the country are less than Rs 200.

• Securing transactions : With billions of transactions processed every month via UPI, downtime is not that rare. To recognize this problem, the National Payments Corporation of India (NPCI) launched UPI Lite last year in September - a lighter and more efficient version of UPI for small transactions. Paytm also assures users that UPI Lite "will never fail" even during peak transaction times and sidesteps the banks' success rate issues.

MARKET PERSPECTIVE

• As a reminder, Paytm Payments Bank has also introduced the ability for users to instantly send and receive money from a phone number combined with a registered UPI ID through the Paytm app.

• With 389.61 million registered transactions, the bank is one of the top 10 money transfer banks for UPI transactions.

• Last month, Indian digital payments company PhonePe raised another $100 million in an ongoing round. PhonePe is the undisputed market leader in mobile payments on UPI with about 50% of all such transactions. With UPI Lite, Paytm is looking to catch up on this strategic part of its payments business.