What Are The Advantages Of This Payment System? Google Pay Integrates UPI Lite

To improve user experience, Google Pay has incorporated UPI Lite, a condensed version of the Unified Payments Interface (UPI) system. Users may load up to Rs 4,000 daily and do quick transactions up to Rs 200 using UPI Lite, which also functions as a wallet or account. Users may transact without entering a pin. Thus, Google Pay joins the ranks of well-known services like BHIM, Paytm, and PhonePe as well as a number of banks that have already implemented UPI Lite.

Let’s explore UPI Lite’s definition and operation.

What Is UPI Lite & What Are Its Advantages?

UPI Lite, a condensed version of the original UPI payment system, was released in September 2022 by the National Payments Corporation of India (NPCI) and Reserve Bank of India (RBI). Its goal is to make it possible for consumers to perform small-value transactions without having to deal with the sporadic processing issues that banks have.

UPI Lite transactions have a ceiling of Rs. 200, as opposed to conventional UPI transactions, which have a daily limit of Rs. This function guarantees simple payments.

Although UPI Lite accounts are connected to users’ bank accounts, they do not depend in real-time on the issuing bank’s core banking system. As a consequence, payment success rates are greater even during busy transaction times, and bank passbooks are less crowded.

Users must download a UPI Lite-compatible app, such as BHIM, Google Pay, PhonePe, Paytm, etc., in order to utilize UPI Lite. Users may establish a UPI Lite ID and contribute funds to their UPI Lite balance after installing the app.

How Do I Set Up And Use UPI Lite?

Users of UPI apps may quickly enable the UPI Lite capability by following a short procedure that does not need KYC verification.

Open the appropriate app on your smartphone, such as BHIM, Google Pay, Paytm, PhonePe, etc. In the upper right corner of the screen, typically, tap the profile symbol or your profile photo. Navigate to the “UPI LITE” activation option and choose it.

The program will let you enable UPI Lite if your bank supports it. To connect your bank account, adhere to the instructions and provide the required information when asked. You’ll get a confirmation message or indication that UPI Lite has been successfully activated after the connecting procedure is finished.

Users may deposit up to Rs 4,000 or Rs 2,000 twice every day into their UPI Lite accounts. Users must now input the recipient’s UPI ID or scan a code in addition to the desired payment amount.

The UPI Lite balance will not earn interest. Depending on the number of UPI Apps a user uses to access a single designated bank account, users may have many such UPI Lite on-device balances, according to NPCI.

Security Options

Multi-factor authentication safeguards user data and transactions, thus security is still a top concern in UPI Lite transactions. To improve security, a PIN-based authentication system has been installed. “Without AFA, i.e. UPI PIN, the UPI Lite transactions will be made available. However, unless the user has deactivated app authentication, it is advised that the user access the UPI App using app passcode or device authentication (biometric, pattern, etc.) before completing the UPI Lite transaction, according to NPCI.

Furthermore, according to NPCI, the UPI App or UPI Lite’s security is the responsibility of the Payments Service Providers (PSP) or third-party app provider (TPAP).