UPI Lite X: A new way to make offline payments
The Reserve Bank of India governor Shaktikanta Das introduced a new kind of UPI – UPI Lite X durnig the Global Fintech Fest 2023 which allows transactions without an internet connection.
UPI Lite X is a new feature that allows users to make offline payments using NFC (Near Field Communication). This means that the sender and receiver’s devices need to be in close proximity for the transaction to be completed.
UPI Lite: A feature that allows users to make small-value payments (up to ₹500) without requiring a UPI pin to an on-device wallet.
What is UPI Lite X and How it works:
UPI: A digital payment system that allows to make transactions between two accounts.
UPI Lite X, UPI Lite, and UPI are all digital payment systems in India, but they have some key differences.
UPI Lite X:
- Allows users to make offline payments using NFC.
- Sender and receiver’s devices need to be in close proximity.
- Currently limited to small value transactions.
UPI Lite:
- Allows users to make small-value payments (up to ₹500) without requiring a UPI PIN.
- Requires an internet connection.
- Can be used for both small and large value transactions.
UPI:
- Allows users to make transactions between two accounts.
- Requires an internet connection.
- Can be used for both small and large value transactions.
Difference between UPI Lite X, UPI Lite and UPI:
| Feature | UPI | UPI Lite | UPI Lite X |
|---|---|---|---|
| Connectivity | Requires internet | Requires internet | Does not require internet |
| Proximity | Sender and receiver do not need to be in close proximity | Sender and receiver do not need to be in close proximity | Sender and receiver need to be in close proximity |
| Transaction type | Small and large value transactions | Small value transactions (up to ₹500) | Small value transactions (up to ₹500) |
| Transaction method | QR code, UPI ID, UPI 123Pay | QR code, UPI ID | NFC |
UPI Lite X is the newest feature of UPI, and it is still in its early stages of development. It is expected to revolutionize the way people make payments in India, especially in areas with poor internet connectivity.
Benefits of UPI Lite X:
- Offline payments: UPI Lite X allows users to make payments even when they do not have an internet connection.
- Faster transactions: UPI Lite X transactions are faster than other payment methods, such as cash or cards.
- More secure: UPI Lite X is more secure than cash or cards, as it uses NFC technology.
Examples of how UPI Lite X can be used:
- Paying for a bus ticket or train ticket in an area with poor internet connectivity
- Paying for groceries at a small store that does not have a POS machine
- Paying for a cup of coffee at a cafe in a hurry
Overall:
UPI Lite X is a promising new feature that has the potential to make payments more convenient and accessible for everyone, especially in areas with poor internet connectivity.
Additional notes:
- UPI Lite X is still in its early stages of development, but it has the potential to revolutionize the way people make payments in India.
- UPI Lite X is expected to pave the way for the expansion of UPI, which has become a major source of payment in the country due to its feasibility, accessibility, and zero cost.
