Key Points
- PhonePe has launched the UPI Circle feature, allowing users to authorize family and friends to make payments from their UPI account even if those users don’t have a bank account.
- Secondary users get their own UPI ID and can make payments within set limits, while the primary user retains full control and oversight.
- The feature is designed to help underbanked individuals, dependents, and those new to digital payments, making financial services more inclusive.
- UPI Circle offers two delegation modes: automatic approval for small payments or manual approval for every transaction.
- Up to five secondary users can be added, and all transactions are tracked for transparency and security.
New Delhi: PhonePe, one of India’s leading digital payment platforms, has introduced a groundbreaking feature called UPI Circle, aimed at making digital payments more accessible and secure for families, dependents, and those with limited access to banking services. The feature, launched on April 15, 2025, allows a primary user to create a trusted group called a “circle” and authorize secondary users to make payments from their UPI account, even if those users don’t have their own bank account.
How UPI Circle Works
- Create a Circle: The primary user (such as a parent or household head) can add up to five trusted contacts family members, friends, or dependents—by entering their UPI ID or scanning a QR code.
- Secondary User Access: Once added, secondary users receive their own UPI ID and can make payments using the primary user’s bank account. This is especially useful for teenagers, elderly parents, or anyone without a bank account.
- Delegation Modes:
- Partial Delegation: Secondary users can make payments up to ₹15,000 per month and ₹5,000 per transaction without needing approval for each payment.
- Full Delegation: Every payment by a secondary user requires the primary user’s approval, offering tighter control.
- Security and Control: The primary user can monitor all transactions, approve or reject payment requests, set spending limits, and remove users from the circle at any time. Biometric or passcode authentication adds an extra layer of security.
Why UPI Circle Matters
UPI Circle is a significant step toward democratizing digital payments in India. It empowers:
- Underbanked and rural users who may not have easy access to banking.
- Dependents and teenagers who need to make digital payments but lack their own bank accounts.
- Senior citizens who may be uncomfortable with digital transactions but can rely on trusted family members for help.
PhonePe’s Chief Business Officer, Sonika Chandra, highlighted, “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, authorizing payments on behalf of older parents, or busy individuals delegating household chores”.
How to Set Up UPI Circle on PhonePe
- Open the PhonePe app and select the ‘Enable UPI Circle’ option on the home screen.
- Invite secondary users by scanning their QR code or entering their UPI ID.
- Secondary users accept the invite on their PhonePe app to join the circle.
- Start making payments: Secondary users can now use the primary user’s account for payments, within the set limits and controls.
Enhanced Security and Transparency
- All transactions are logged, and the primary user receives notifications for every payment.
- The primary user can track expenses, review payment history, and revoke access instantly if needed.
- Biometric or passcode authentication is required for added safety.
PhonePe’s Reach
As of March 2025, PhonePe boasts over 600 million registered users, a merchant network of 40+ million, and processes more than 330 million transactions daily.
