PhonePe introduces UPI Circle for easier payments among family members
PhonePe's UPI Circle allows users to make payments on behalf of others, providing a digital profile for unbanked individuals without a linked bank account.
- Apr 16, 2025,
- Updated Apr 16, 2025 5:04 PM IST
PhonePe has launched a new feature called UPI Circle, which enables users to create a "circle" to make payments on behalf of family, friends, or trusted contacts. This development provides dependents in a family the opportunity to establish their own digital payments profile without needing a linked bank account, thereby offering secure financial services to "unbanked" individuals. The primary user can authorise a secondary user to make payments using their UPI account by delegating authentication rights.
The UPI Circle feature permits the primary user to set a daily transaction limit of up to ₹15,000, with a maximum of ₹5,000 per transaction. Up to five individuals can be authorised to make payments under the primary user's control. The primary user retains the ability to review payment requests and monitor spending, ensuring full oversight of spending and access permissions. Adding secondary users to a circle is facilitated through a UPI ID or QR code, allowing payments to be managed from any location.
According to Sonika Chandra, chief business officer of consumer payments at PhonePe, "UPI Circle is a significant step forward in extending the ease and convenience of digital payments for those who are underbanked and those new to the ecosystem. This can be a parent providing expenses to their college kids, authorising payments on behalf of older parents who may be wary of digital payments, or busy individuals who want to delegate household chores." This feature is designed to enhance digital transaction convenience, particularly for those unfamiliar with or unable to use traditional banking services.
Using UPI Circle on PhonePe
To use UPI Circle, a primary user must enable the feature in the PhonePe app, invite secondary users, and authorise their payments. Upon receiving an invitation, secondary users can accept and begin making payments on behalf of the primary user.
> Open the PhonePe app and navigate to the home screen. Locate and enable UPI Circle.
> To add secondary users, click on 'Invite Secondary Contact.' Users have the option to either scan the QR code or manually enter the UPI ID of the contact.
> Secondary users will receive an invitation and need to accept it in order to join the UPI Circle.
> Once successfully added, secondary users can choose the primary user's account as a payment option and initiate transactions on their behalf.
This feature has been introduced to simplify digital transactions for individuals who may not have access to traditional banking services or are not familiar with using them.
This initiative aims to extend digital payment convenience to underbanked individuals and those new to digital payments, offering flexibility and security. The service supports various scenarios, such as parents managing expenses for college students or authorising payments for older adults.
PhonePe has launched a new feature called UPI Circle, which enables users to create a "circle" to make payments on behalf of family, friends, or trusted contacts. This development provides dependents in a family the opportunity to establish their own digital payments profile without needing a linked bank account, thereby offering secure financial services to "unbanked" individuals. The primary user can authorise a secondary user to make payments using their UPI account by delegating authentication rights.
The UPI Circle feature permits the primary user to set a daily transaction limit of up to ₹15,000, with a maximum of ₹5,000 per transaction. Up to five individuals can be authorised to make payments under the primary user's control. The primary user retains the ability to review payment requests and monitor spending, ensuring full oversight of spending and access permissions. Adding secondary users to a circle is facilitated through a UPI ID or QR code, allowing payments to be managed from any location.
According to Sonika Chandra, chief business officer of consumer payments at PhonePe, "UPI Circle is a significant step forward in extending the ease and convenience of digital payments for those who are underbanked and those new to the ecosystem. This can be a parent providing expenses to their college kids, authorising payments on behalf of older parents who may be wary of digital payments, or busy individuals who want to delegate household chores." This feature is designed to enhance digital transaction convenience, particularly for those unfamiliar with or unable to use traditional banking services.
Using UPI Circle on PhonePe
To use UPI Circle, a primary user must enable the feature in the PhonePe app, invite secondary users, and authorise their payments. Upon receiving an invitation, secondary users can accept and begin making payments on behalf of the primary user.
> Open the PhonePe app and navigate to the home screen. Locate and enable UPI Circle.
> To add secondary users, click on 'Invite Secondary Contact.' Users have the option to either scan the QR code or manually enter the UPI ID of the contact.
> Secondary users will receive an invitation and need to accept it in order to join the UPI Circle.
> Once successfully added, secondary users can choose the primary user's account as a payment option and initiate transactions on their behalf.
This feature has been introduced to simplify digital transactions for individuals who may not have access to traditional banking services or are not familiar with using them.
This initiative aims to extend digital payment convenience to underbanked individuals and those new to digital payments, offering flexibility and security. The service supports various scenarios, such as parents managing expenses for college students or authorising payments for older adults.