UPI Lite, the new feature that allows people to make small-value transactions through the Unified Payments Interface platform without entering a PIN, is a potential game changer that could boost financial inclusion and confidence among first-time users, according to industry experts.
The feature, launched by RBI Governor Shaktikanta earlier this week, will also play a big role in boosting the efficiency of banks in the world’s second most populous country.
George Sam, Director and Co-Founder of Mindgate Solutions said: “The UPI Lite feature will help banks simplify core systems by processing transactions up to Rs 200. State Bank of India, HDFC and Bank of Baroda.
He said that of about 600 million UPI transactions in August, about 40 to 42 percent were in the low value category. from Dhanbad on Friday.
This facility will help build the confidence of people in rural areas who are using UPI for the first time.
Madan Padaki, Founder and CEO of Village Commerce Network 1Bridge.
According to Boston Consulting Group (BCG) and PhonePe June 2022, the next wave of growth is likely to come from Tier 3-6 locations as they have contributed to around 60-70 percent of new mobile payment customers over the past two years. Pulse report on digital payments.
BCG Partner Vivek Mandhata said: “The UPI Lite feature will be rolled out and will be successful in many smaller cities and will benefit all stakeholders, especially banks as it will reduce the speed of core banking infrastructure.” from Dhanbad,
It will all depend on how payment apps create their wallets and how the customer feels using them, he said, highlighting how wallets add an extra step to the process using UPI. Can’t be that easy.
Mindgate’s Sam anticipates that more banks will adopt the UPI Lite feature in the coming days as it will generate higher transaction success rates and help banks act faster.
The banking partners agreed.
Anil Tembe, General Manager, IT e-Channel, said: “The launch of the UPI Lite service on the UPI platform will improve the payment experience for low-value paying customers and help banks make better use of the bank’s payment infrastructure. ‘ from the State Bank of India.