PhonePe Launches UPI Circle to Enable Trusted Contact Payments

PhonePe on Wednesday rolled out a new feature, UPI Circle, that lets users authorize others to conduct digital payments on their behalf, expanding its services to cover unbanked and underbanked individuals.

The new functionality enables a primary user to set up a group or "circle" within the PhonePe app, allowing trusted contacts such as family members or dependents to perform UPI transactions. This capability is particularly beneficial for individuals without linked bank accounts, including children, elderly users, and those new to digital banking.

UPI Circle allows the primary account holder to delegate transaction rights securely. Up to five secondary users can be added to a circle using their UPI ID or by scanning a QR code. The primary user retains complete oversight, including the authority to monitor transactions, review payment requests, set spending caps, and withdraw access at any time.

Transaction controls include a daily spending limit of Rs 15,000 and a cap of Rs 5,000 per transaction for fully authorized secondary users. The delegation mechanism ensures the primary account owner remains in charge of financial decisions, while dependents gain access to controlled digital payment capabilities.

To use the feature, PhonePe users need to activate UPI Circle from the app's home screen. Secondary users can be added by selecting 'Invite Secondary Contact' and entering their details. Upon accepting the invitation, secondary users can select the primary user’s UPI account during checkout and proceed with payments.

Sonika Chandra, Chief Business Officer of Consumer Payments at PhonePe, stated that UPI Circle offers a practical solution for extending digital finance to a broader segment, including students, elderly dependents, and those unfamiliar with digital platforms.