Paytm's UPI lite wallet feature enables users to make secure and fast transactions without the need for a personal identification number
Users can add up to INR 2,000 to their wallet twice a day, with the total daily limit set at INR 4,000
Paytm’s UPI Lite wallet feature is embedded in the app and can be activated by clicking on the ‘UPI Lite Activate’ icon on the homepage
One97 Communications, the parent entity of fintech major Paytm, is now planning to shift its focus to unified payments interface (UPI) Lite wallet aimed at catering to users who prefer wallets for low-value transactions.
To be sure, the UPI Lite wallet feature enables users to make secure and fast transactions without the need for a personal identification number.
Paytm’s UPI Lite wallet is designed to handle transactions up to INR 500 each. Tapping this feature, users can add up to INR 2,000 to their wallet twice a day, with the total daily limit set at INR 4,000.
The streamlined approach, Paytm
claims, will benefit users who frequently handle small payments such as buying groceries, paying for parking tickets and daily commute fares.
“We see the wallet as an essential payment tool that lets users keep money for everyday use and make quick payments on the go. Paytm UPI Lite improves this experience, allowing for faster transactions at local stores, street vendors, and for regular purchases while keeping bank statements clear. We are committed to grow the UPI ecosystem in partnership with NPCI to every nook and corner of India,” a spokesperson for Paytm said in a statement.
It is pertinent to note that the Reserve Bank of India has prohibited Paytm Payments Bank from offering incremental banking services, effective March 24.
As per RBI instructions, users can withdraw or transfer funds from their Paytm wallet to another wallet or bank account up to the available balance. Once the balance is depleted, users can no longer add money to the Paytm wallet.
Paytm’s UPI Lite wallet is different from its in-house wallet operations in that it processes small-value transactions.
Paytm’s UPI Lite wallet feature is embedded in the app and can be activated by clicking on the ‘UPI Lite Activate’ icon on the homepage.
Select the bank account you want to link with UPI Lite and enter an amount to add to the wallet to make transactions.
Authenticate the MPIN to set up your UPI Lite account. Once the process is complete, you can make payments using Paytm’s UPI Lite wallet by scanning the UPI QR code or selecting a contact number.
A number of banks support Paytm’s UPI Lite wallet feature, including the likes of Axis Bank, HDFC Bank, Indian Bank, Kotak Mahindra Bank, Punjab National Bank, and State Bank of India.
Paytm first floated the UPI Lite facility back in 2022. Among other fintech giants offering the UPI Lite facility to users include PhonePe, Google, Navi and Groww.
The development comes at a time when Paytm is looking to foray into the ride-hailing space with autorickshaw offerings.
Earlier this month, Paytm Payments Bank migrated its bill payment operations to Euronet Services India. The move followed Paytm switching its retail point-of-sale business to RBL Bank and merchant settlement services to Axis Bank.
