Digital funds big Paytm introduced in February that it could be enabling UPI Lite companies on its platform. For the uninitiated, NPCI (Nationwide Funds Company of India) had final yr revealed a extra environment friendly model of the pre-existing UPI service to conduct smaller transactions. Now Paytm has turn into the primary fee service to utilize this function and has made it out there on Android units. I sat down with Shreyas Srinivasan, Chief Product Officer at Paytm to debate the advantages of UPI Lite on Paytm and his ideas on the service’s wider adoption.
Q: Please clarify in your individual phrases how UPI Lite works?
Shreyas: So historically UPI transactions have 4 completely different components. There’s your app, your financial institution, the receiver’s app, and the receiver’s financial institution. The issue occurs when in a conventional UPI transaction the financial institution on both facet is having success charge points. So to assist that state of affairs you’ve UPI Lite. It’s an on-device pockets the place a comparatively small stability is moved out of your financial institution to your app. Then the fee occurs out of your app to the receiver’s checking account. It’s that straightforward. It removes that one layer of communication that occurs when your app is contacting your financial institution to get the required funds.
Q: What are the transaction limits on UPI Lite? How is it completely different from UPI?
Shreyas: So with UPI Lite on Paytm, you’ll be able to solely conduct transactions which might be beneath Rs 200. As talked about earlier, it really works like a pockets and you’ll retailer a most of Rs 2,000 at a time. Nonetheless, if you’re to exhaust this quantity, you’ll be able to prime up with one other Rs 2,000 supplying you with Rs 4,000 as a every day restrict on whole transactions. You don’t have to enter your UPI PIN whereas transacting with UPI Lite, which is a giant benefit over common UPI.
Additionally learn: Paytm UPI Lite launched: what it’s, easy methods to set it up, the whole lot it’s essential learn about it
Q: What number of customers are at the moment utilizing Paytm’s UPI Lite service? What sort of progress are you seeing?
Shreyas: I believe these are simply early days however we do have a number of million customers utilizing Paytm UPI Lite already. The common transaction measurement on Paytm’s UPI Lite service is about Rs 50 to 60 at this time, so we see it as an integral a part of the UPI ecosystem. For customers who wish to make small worth transactions, i.e. underneath Rs 200, we auto-select UPI Lite for you, and for customers who wish to make massive worth funds, the Paytm app will change to regular UPI. Practically half of all UPI transactions are underneath Rs 200 so hopefully, we imagine that the introduction of UPI Lite shall be the easiest way to make these transactions profitable. Already we’re seeing a progress of 30-40 % in UPI Lite utilization each 4 days since our announcement. We anticipate this quantity to maintain rising.
Q: Does Paytm plan to extend the transaction worth on UPI Lite sooner or later?
Shreyas: I believe it’ll positively be thought-about after a interval of six months. These new options are continually altering and being reviewed ceaselessly. I’m fairly assured that there shall be a change within the present most transaction worth and every day limits. Nonetheless, at this level, I can’t touch upon what these values shall be simply but. I can, nonetheless, inform you that UPI Lite on Paytm is doing about Rs 3 crores in transactions per day.
Q) I see that a number of of the most important banks like ICICI and Axis Financial institution have nonetheless not adopted UPI Lite. When do you see a wider adoption occurring?
Shreyas: I imagine all of the banks are conscious that from their very own viewpoint, being on UPI Lite is useful for them. It’s because one of many large issues UPI Lite accomplishes is it reduces the load on the banking software program of particular person banks. That’s been a giant downside for banks since lots of small-value transactions can stress out their digital infrastructure. So I believe they’re all incentivised to undertake, and a few of the greater banks have began already. I hope on this quarter many of the greater banks will make UPI Lite out there on their platforms.
Q) Are you planning to go about educating your customers on UPI Lite?
Shreyas: Completely, each time one thing new launches we’ve to coach prospects a good bit. We’ve already began this on our social media and our on-app creatives. Aside from that we additionally clarify the advantages of UPI Lite earlier than the primary transaction is made. It’s pretty simple and I believe most individuals will be capable of undertake it fairly shortly.
Q) Paytm’s UPI Lite is at the moment solely out there for Android customers. When do iOS customers get it?
Shreyas: It’s at the moment within the works. India’s smartphone market is majorly on Android so it made sense to first launch the UPI Lite performance there. Nonetheless, within the subsequent two-three weeks, iPhone customers also needs to be getting it as effectively.
Disclosure: this author attended the launch occasion in Goa on Paytm’s invitation
