UPI LITE launched by PhonePe to support low-value transactions

PhonePe announced on Wednesday that the UPI LITE function, which enables users to start small payments under ₹200, is now live on its app.

In UPI LITE accounts, the feature can be accessed with a single tap without requiring a PIN or passkey.

The on-device UPI LITE balance is debited to complete the transaction directly, without contacting the remitter bank's main banking systems or those of the customer banks. This increases the likelihood that the transaction will succeed while also making it more frictionless and faster than typical UPI transactions.

Users can easily register a UPI LITE account and quickly activate the capability on their PhonePe app without the need for KYC authentication.

A user's LITE account can hold up to ₹2000, and transactions of ₹200 or less can be made at once. Every day, users will receive an SMS with a history of the UPI LITE transactions made from their bank accounts. Since the transactions would only be visible in LITE accounts, this will help keep bank statements and passbooks clear.