The UPI ecosystem aims to migrate low-ticket transactions to UPI Lite to reduce system pressure, enhance efficiency, and minimize transaction failures.
The Unified Payments Interface (UPI) ecosystem is strategizing to migrate low-ticket transactions to UPI Lite, addressing technical declines and easing system pressure. Financial institutions, including banks and fintechs, are operating at full capacity to handle the growing transaction volume. Dilip Asbe, MD and CEO of the National Payments Corporation of India (NPCI), highlighted that technical declines on UPI have significantly reduced, from 8-10% in 2016 to under 0.7% in 2024. “Over a period, there has been a lot of effort from the ecosystem, especially banks, to scale up infrastructure. As time passes, low-ticket transactions must be migrated to UPI Lite. This is the strategy that I think the overall ecosystem is looking at,” Asbe stated. Migrating low-value transactions to UPI Lite is expected to ease up system pressure and optimize operational efficiency across the ecosystem.
