What Is UPI Lite X? How It Works & How It’s Different From UPI Lite

Making payments in areas with no or poor internet connectivity is inconvenient. But with UPI Lite X, you can make payments anytime and from anywhere, even without an active internet connection. This means no waiting for the network, no payment delays, and no transaction failures due to poor or no internet connections.

Let's find out how it works and how you can use UPI Lite X to make payments.

What is UPI Lite X?

UPI Lite X was launched in 2023 by Shaktikanta Das, the governor of the Reserve Bank of India. Based on Near Field Communication (NFC) technology, UPI Lite X processes payment through an on-device wallet instead of a live bank request. It targets areas with poor internet connectivity to make payments convenient.

To make payments, you simply need to bring your device near an NFC-enabled device or payment terminal and authorise the payment.

Also Read - Advantages of Using UPI for Everyday Transactions

How to Make Transactions With UPI Lite X?

Using UPI Lite X to make payments is simple with just a few steps. Here's a step-by-step breakdown on how to use UPI Lite X for transactions.

Step 1 - Install a Supported App

Install an app supported by UPI Lite X on your mobile device. Make sure that your mobile phone has NFC support.

Step 2 - Register Your Bank Account

Open the UPI app and register your bank account. Make sure that your bank account is UPI-enabled, and a UPI PIN is set. Confirm UPI PIN and register to activate payments.

Also Read - How to Change and Reset UPI PIN?

Step 3 - Activate UPI Lite X Payments

Navigate to settings and click on set up UPI Lite X payments. Agree to the terms and conditions to proceed with the activation.

Step 4 - Select Payment Option

To make the payments, click on “Tap & Pay”. Fill in the amount, review the details, and tap your device on the NFC-enabled payment terminal.

Key Benefits and Features of UPI Lite X

According to a Statista survey, more than 40% of users reported that up to 10% of their digital payment attempts did not go through because of weak connectivity.

UPI Lite X helps bridge this gap. Here are the features and benefits of UPI Lite X -

Easy Offline Transactions

UPI Lite X ensures quick and easy payments even when you are offline. This is especially convenient for low-value payments such as buying groceries.

Near Field Communication (NFC) Technology

NFC technology ensures secure and seamless transactions and minimises payment interruptions and failures. This ensures a fast and simple process to send and receive payments.

On-Device Wallet

UPI Lite X uses an on-device wallet with a limit of ₹2,000. This removes the need for authorisation by banks in real time and speeds up the payment process.

Low Battery Usage

UPI Lite X uses a little battery to ensure that the device stays powered longer. This makes it a convenient choice to make payments even in areas where charging facilities are not easily available.

Enhanced Security

UPI Lite X is governed by configurable security rules to protect user data and prevent fraud. The rules are currently set to one debit and 10 credit transactions.

Also Read - Net Banking vs UPI: Which is Better for Paying Personal Loan EMIs?

Requirements and Compatibility for UPI Lite X

To ensure security, there are some requirements to enable UPI Lite X. Here's a list of UPI Lite X requirements and compatibility -

NFC-Enabled Device

The payer and payee need to use NFC-enabled devices to make and receive payments. Plus, the user needs to enable the UPI Lite X feature on their devices.

Supported UPI Apps

The UPI app you use should support UPI Lite X. Update your device and app to get the latest versions to ensure compatibility. Plus, it currently supports Android devices.

Wallet Funding Needs

• The maximum cap for the wallet balance is ₹2,000
• The maximum transaction limit is ₹5,00 per transaction

UPI Lite X vs UPI and UPI Lite: A Comparison

UPI, UPI Lite, and UPI Lite X offer unique ways to ensure seamless payments in areas with good internet connectivity and even poor internet connectivity.

Here's how they differ in connectivity, authentication, transaction limits, and ideal use cases -

The summary -

• UPI - Ideal for making online payments for high-value transactions
• UPI Lite - Ideal for online transactions for small-value payments
• UPI Lite X - Ideal for payments in areas with low internet connectivity

Make Seamless Payments With UPI Lite X

With NFC technology and an on-device wallet, UPI Lite X extends quick, secure payments even in low-network areas. It’s ideal for everyday small-value transactions.

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Frequently Asked Questions

Can UPI Lite X be used for payments above ₹500?

No, since the per-transaction payment limit for UPI Lite X is set to ₹500.

Are there any charges to use UPI Lite X payments?

Currently, there are no charges for UPI Lite X payments, but you should connect with the UPI service provider for any confirmation on fees.

How does UPI Lite X security compare to regular UPI?

UPI Lite X uses an on-device wallet and NFC technology to reduce payment risks. As you do not need an active internet connection, it decreases the risk of UPI fraud. 

What if my device does not support NFC?

If your device does not support NFC, you cannot use UPI Lite X to make payments.

How can merchants accept UPI Lite X?

Merchants need to have a UPI Lite X-enabled device to accept payments from UPI Lite X.

Is UPI Lite X available in all UPI apps?

No, not all UPI apps support UPI Lite X. So, you will need to switch to a compatible app to use UPI Lite X.

Disclaimer: The information provided in this blog post is intended for informational purposes only. The content is based on research and opinions available at the time of writing. While we strive to ensure accuracy, we do not claim to be exhaustive or definitive. Readers are advised to independently verify any details mentioned here, such as specifications, features, and availability, before making any decisions. Hero FinCorp does not take responsibility for any discrepancies, inaccuracies, or changes that may occur after the publication of this blog. The choice to rely on the information presented herein is at the reader's discretion, and we recommend consulting official sources and experts for the most up-to-date and accurate information about the featured products.