Digital payments have reached the mainstream. From paying for groceries to transferring money to a friend, most people in India use a mobile payment system. The most popular system is Unified Payments Interface (UPI) that has made the transfer of money fast, secure, and easy.
But in certain situations, individuals have to pay minuscule amounts only, like paying ₹20 for tea or ₹50 for parking. In low-value transactions like these, PIN entry and waiting for the bank server can be sluggish. To overcome this problem, the National Payments Corporation of India (NPCI) created UPI Lites. In this article, we are going to inform you about what is UPI, how is UPI Lites, features, benefits, day and transaction limits, and how it is different from UPI payment and mobile wallets. We will also finish the UPI Lites app download guide, transaction history, and why this system is becoming so popular.
What is Unified Payments Interface?
Let’s first know about what is a UPI, before we discuss UPI Lites.
Unified Payments Interface or UPI is an NPCI payment system that came into operation in 2016. It allows users to link more than one bank account with one mobile application. With this, money can be sent instantly using just:
- A payment UPI ID or payment UPI address.
- A mobile number.
- A QR code.
This system is so fast that funds are transferred in seconds, 24 hours a day and 7 days a week, even during holidays. Payment through UPI has transformed the way India pays as you do not need to carry cash, swipe cards, or wait in lines. Almost all shops, restaurants, and online stores now accept payments through UPI.
What is UPI Lite?
As we now know what is unified payment interface, let us see about UPI Lite. UPI Lite is a smaller version of UPI that is meant to be used for small or low-value transactions. It is like a wallet UPI, where you pre-load the money from your bank account into the UPI Lite wallet. Once the wallet is loaded, you can make instant payments without having to type in the PIN for every payment. For example, if you buy snacks worth ₹40 or pay ₹70 to a rickshaw, UPI Lite enables you to pay instantly. It doesn’t involve linking it to your bank like regular UPI payment. It makes it faster and less prone to failed payments.
Features of UPI Lite
UPI Lite is successful because of its novel features. Let us list them step by step:
- Instant Payments – Small payments are processed instantly without a pause.
- No PIN Required – In contrast to UPI payment, you don’t need to enter a PIN for each small transaction.
- Offline Availability – Even with low internet, you can make some transactions.
- Easy Install – Simply follow the UPI Lite download process in your app, load money, and begin paying.
- Secure Payment – All happens within the authentic UPI Lite app, securing it.
- Best for Everyday Transactions – Great for bus fare, street food, parking, tea stalls, and the like small-value payments.
UPI Lite Limits
Since UPI Lite is meant for minor payments, there are some limits involved:
- UPI Lite daily limit – You can only spend ₹2,000 a day.
- UPI Lite payment limits – Each transanction must not be more than ₹500.
- UPI Lite transaction limits – Great for small and regular payments.
These limits keep it safe and make only normal spends available for processing via UPI Lite.
UPI Lite vs UPI
Many want to compare UPI Lite vs UPI. Here is a simple comparison:
- UPI – Linked directly to your bank account. For both small and large transactions. All payments need a PIN.
- UPI Lite – Functions as a wallet UPI. Only for small payments. No need for PIN. Faster and smoother for spends now.
In case you require a UPI Lite versus UPI full comparison, think of UPI as a huge road upon which vehicles of all sizes and types (small and big payments) can move. But UPI Lite is a two-wheeler path that exists solely for light and fast rides (small payments).
UPI Lite vs Mobile Wallet
Here is UPI Lite vs mobile wallet comparison:
- UPI Lite is connected to your bank directly via the UPI system. It’s more secure and less of a process.
- Mobile wallets (like Paytm Wallet) are separate from your bank account. You have to pre-load money in them.
- With UPI Lite comparison, consumers enjoy the security and speed of UPI along with the convenience of a wallet.
In brief, UPI Lite gives you the convenience of a mobile wallet but in the secure UPI environment.
UPI Lite App Download Guide
Initiating UPI Lite is simple. Here is the UPI Lite app download guide:
- Launch your existing UPI Lite app like Paytm, PhonePe, BHIM, or Google Pay.
- Go to payment options or settings and select UPI Lite download or “Activate UPI Lite.”
- Link your bank account.
- Deposit money in wallet UPI Lite (up to ₹2,000).
- Start making payment on small transactions instantly.
The whole process takes a few minutes.
UPI Lite Transaction History
One of the useful features is the UPI Lite transaction history. Every time you pay, it gets saved in your app. You can view what you spent, where you spent, and when. It is easy to track small daily spends, unlike cash which we easily forget.
Why Use UPI Lite for Small Transactions?
There are several reasons why you must use UPI Lite for minor transactions:
- Saves time as no PIN is required.
- Operates faster since it doesn’t visit the bank every time.
- Proves useful in regions with weak internet.
- Reduces strain on banks for low-value transactions.
- Allows you to track all small transactions through the UPI Lite transaction history.
For example, if you buy tea, snack, or a bus ticket repeatedly during the day, UPI Lite is much better than regular UPI payment.
Advantages of UPI Lite
- Easy for one-time users.
- Safer than physical cash.
- Can be used in almost any small shop.
- Decreases failed transactions during peak banking hours.
- Ideal for students and daily wage workers who have instant payments.
Disadvantages of UPI Lite
- UPI Lite daily cap of ₹2,000 may be unsuitable for many users.
- Cannot be used for large-value transfers.
- Not yet implemented across all banks or apps.
- Limited to ₹500 per transaction.
However, the advantages outbalance disadvantages for most people.
Future of UPI Lite
India’s digital payments are growing at a very fast rate. UPI Lite will be as widespread as cash for low-value transactions. With increasingly more apps and banks joining to provide it, and with the customer getting used to cashless transactions, UPI Lite will be in the forefront of establishing a cashless economy.
Final Thoughts
Unified Payments Interface (UPI) has already witnessed the trend of payments made through digital means in India. With UPI Lite, even low-value payments have become faster and easier. By removing PINs and allowing instant payments, UPI Lite is perfect for low-value transactions. No matter if one is buying tea, calling an auto-rickshaw, or even for parking, UPI Lite saves time and effort. Although there are limitations like ₹500 per transaction limit and a ₹2,000 limit per day, these are more than enough for daily expenses. As a whole, UPI Lite provides the security of UPI payment as well as the convenience of a wallet UPI and thus is the future of micro digital payments in India.
FAQs on UPI Lite
Q1: What is unified payments interface Lite?
unified payments interface Lite is a light version of UPI, meant for transactions of small values.
Q2: How much is the UPI Lite limit?
The daily limit of UPI Lites is ₹2,000, and the UPI Lites payment limit of one transaction is ₹500.
Q3: How do I activate my unified payments interface Lite?
You can activate it through your unified payments interface Lites app such as Paytm or PhonePe as per the UPI Litesdownload guide.
Q4: Is unified payments interface Lite better than UPI?
It’s usage-based. For small payments, UPI Lites vs UPI shows UPI Lites is faster. But for large transfers, regular UPI is better.
Q5: Can I see my past payments?
Yes, your unified payments interface Lite transaction history can be seen in your app.
Q6: Is UPI Lite like a mobile wallet?
Yes, but safer. unified payments interface lite vs mobile wallet means unified payments interface Lite is connected to your bank directly through UPI, while mobile wallets are separate.