UPI Lite and wallet-based pay off to a slow start on zero-MDR bottleneck

Over the past few years, the National Payments Corporation of India (NPCI) has introduced multiple features—UPI Lite, wallet-based payments, recurring payments via UPI, UPI through RuPay credit cards and UPI Circle. These features are aimed at reducing banking system load for small transactions and enhancing network efficiency.

Yet, only recurring payments and credit cards on UPI have shown notable growth. The rest struggle to gain traction due to limited adoption.

“Across both wallet-based UPI payments and UPI Lite, around 100 million transactions…