One97 Communications, the parent company that owns the Paytm brand said on Monday it plans to focus on its UPI Lite wallet to cater to users who prefer a digital wallet for low-value payments.
The company’s announcement comes months after the Reserve Bank of India(RBI) directed its associate entity Paytm Payments Bank to halt a majority of its operations.
The central bank had barred the payments bank from accepting fresh credits in its mobile wallets from March 15.Currently, customers are allowed to withdraw the available balance from the Paytm wallet or transfer it to another wallet or bank account. Once the balance is exhausted, they cannot add money to the Paytm wallet.
Paytm’s UPI wallet is different from the company’s in-house wallet operations. UPI Lite wallet allows users to make instant, fail-proof transactions of up to Rs 500 each, according to the National Payments Corporation of India(NPCI) website.
The service is useful for those who frequently handle small payments like buying groceries, paying for parking, or settling daily commute fares.
Customers using the UPI Lite feature can add up to Rs 2,000 to their wallet twice a day, reaching a total daily capacity of Rs 4,000. They can transact using this UPI balance without a personal identification number(PIN).The collaboration between One97 Communications and payment system providers like Axis Bank, HDFC Bank, State Bank of India and YES Bank will ensure a robust and reliable framework for UPI transactions, the company said.
“Paytm UPI Lite improves this experience, allowing for faster transactions at local stores, street vendors, and for regular purchases while keeping bank statements clear,” a company spokesperson said.Companies like PhonePe, Google Pay, and Groww also offer the UPI Lite solutions.
