Let’s understand this quickly. What is UPI Lite?
UPI Lite is an ‘on-device wallet’. One can add funds into this wallet before making any transaction. The best attraction of UPI Lite is that users can make payments without being online.
Here are 3 ways I feel startups will benefit from UPI Lite:
💡Access to feature phone users : There are still 320 million people in India still using feature phones. With UPI Lite, many agriculture and rural-based startups can now digitize payments and make their offerings clearer, wider and more efficient
💡Better customer experience across remote areas: With plans to go fully offline for all transactions (currently need internet to load wallet) a huge problem of having an unstable internet connection and thus not being able to complete transactions is solved. Startups can utilise quicker response time to provide a good customer experience. A few fintech companies trying to promote MFs in rural India can surely benefit from this feature
💡Reduces initial resistance: Fantastic first step for the overall digital payment ecosystem. Many who were resistant to trusting their money with digital platforms will hopefully be more comfortable now. This eases the initial resistance to trust other startup offerings that people would otherwise face. Many startups will now have to put less effort into explaining part of the how and can focus more on the why
Any other impact that UPI Lite will drive? Share in the comments below! #startups#india#digital#payments
