Every second counts when you’re making a quick payment. Whether it’s grabbing a coffee or paying for a ride, entering a PIN for small-ticket transactions can feel like an unnecessary friction.
The product team at Paytm identified this challenge and introduced UPI Lite—a feature designed to streamline low-value payments, enhancing both convenience and user experience.
The product manager and the team are featured as one of Upraised's top 50 Game Changers in 2024.
The Problem: Entering PIN for Small Ticket Transactions is a Hassle
The product team at Paytm has identified that approximately 70% of them fall into the small-ticket category—payments under ₹500. However, customers frequently encountered:
- Time Delays: Entering a PIN for every transaction, no matter how small, added friction to the payment process. And it takes a few seconds to a minute for validation and to complete the transaction.
- Interrupted Flow: PIN prompts disrupted the quick, seamless experience users expect, especially for frequent, low-value payments.
This led to a clear need for a solution that could make small-ticket transactions faster and more convenient while maintaining security and reliability.
The Solution: UPI Lite for PIN-less Payments
To address these issues, Paytm’s product team introduced UPI Lite, enabling customers to make PIN-less payments for transactions up to ₹500.
Key Features of UPI Lite
PIN-less Transactions: Users can make payments up to ₹500 without entering a PIN, ensuring faster and smoother transactions.
Seamless Integration: UPI Lite works seamlessly within the existing Paytm app, providing an integrated experience for all payment types.
Enhanced Convenience: Ideal for frequent small-ticket transactions, such as paying for snacks, rides, or groceries, UPI Lite removes unnecessary steps, saving time for users.
Secure and Reliable: Built on UPI’s robust framework, UPI Lite ensures security and reliability, even for PIN-less transactions.
Impact: Boosting Retention and Convenience
Since the implementation of UPI Lite, the product management team at Paytm has observed that it delivered measurable benefits to its users and the company:
- Increased Platform Retention: UPI Lite contributed to a 1.5% improvement in platform retention, as users enjoyed the simplified payment experience.
- Improved User Convenience: By eliminating PIN prompts for low-value payments, it has made small-ticket transactions faster and more user-friendly, encouraging repeat usage.
The Team Behind UPI Lite
Smritinjoy Das: Group Product Manager, Paytm Payments Bank
Post the discontinuation of Paytm Wallet, users could only use UPI for transacting. Smritinjoy & his team wanted to introduce an easier way to make frequent micro-transactions without putting the UPI PIN. Thus they introduced UPI Lite, which allows users to pay in one click with a daily limit of INR 4000, elevating convenience in the day-to-day lives of users.
As a part of Upraised’s Game Changers, we're on a mission to celebrate high-impact problem solving & celebrate the individuals who brought these innovations to life.
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