In the world of digital payments in India, UPI has proven to be the best service introduced by the Government. To put the success of UPI in perspective, a total of 9.96 billion transactions were executed in the month of July 2023, worth ₹15.34 lakh Crore. Furthermore, an inferior but faster and more reliable version of UPI has been introduced, named UPI Lite, empowering small value transactions up to ₹200 in one click. Paytm has contributed the most to make it successful. Let’s dig into the details.
Paytm UPI Lite Leads the Market in Small Value Transactions
The Reserve Bank of India introduced UPI lite in September 2022. Since then, the country has adopted the service in mass. Ten million transactions were being executed in a month. Paytm was the first platform to integrate UPI Lite on their platform. Now has emerged as the leading digital payment app for UPI Lite, with 63% of all the payments executed through the Paytm app.
So far, Paytm Payments Bank has recorded over 50 million UPI lite transactions executed by 9 million active users on the platform. Furthermore, as the platform had introduced UPI lite first, it has recorded a GMV of ₹280 Cr till now.
RBI Increased UPI Lite Transaction Limit
With such popularity among users and its widespread use, RBI has recently increased the per-day limit of UPI Lite from ₹200 to ₹500. Also, to further deepen UPI Lite’s roots, the regulator has decided to introduce offline UPI Lite with the help of Near Field Communication (NFC) technology.
Why UPI Lite?
UPI Lite was introduced by the Reserve Bank of India to eradicate payment failures and to introduce a faster and more reliable version of UPI. UPI Lite payments do not require a PIN to enter before; with a single click, it has the highest success rate of all payment methods. Furthermore, this payment system has lowered the stress of the core banking system. This is because the transaction is being processed between the user and NPCI directly, putting aside the banking system.