In a significant move to simplify digital transactions, PhonePe has rolled out its UPI Circle feature, allowing users to manage payments for family members and trusted contacts seamlessly. This innovation aims to bridge the gap for underbanked individuals and those hesitant to adopt digital payments by enabling secure, shared financial interactions.
What is UPI Circle?
UPI Circle lets primary users create a trusted group (family, friends, or colleagues) where dependents can generate their own UPI IDs without linking a bank account. The primary user authorizes payments, retains control over approvals, and monitors all transactions.
Key Benefits of UPI Circle
- Financial Inclusion: Enables dependents without bank accounts to make digital payments securely.
- Full Control: Primary users can approve/reject payments, set limits, track expenses, and remove members anytime.
- Secure Transactions: Detailed payment records and encrypted protocols minimize fraud risks.
How to Set Up UPI Circle on PhonePe
- Open the PhonePe App: Navigate to the home screen and select “Enable UPI Circle”.
- Invite Contacts: Tap “Invite Secondary Contact” and add members via their UPI ID or QR code.
- Accept Invitation: Secondary users must accept the invite on their PhonePe app.
- Start Transacting: Once added, secondary users select the primary account as their payment option.
Why This Matters
With over 600 million registered users and 40 million merchants, PhonePe’s UPI Circle addresses a critical need for collaborative payments. It’s ideal for parents managing allowances, caregivers handling expenses for elders, or professionals delegating household payments.
UPI Market Dynamics
PhonePe dominates India’s UPI ecosystem, processing 864.7 crore transactions worth ₹12.57 lakh crore in March 2025, followed by Google Pay’s 659.6 crore transactions. While Google Pay introduced UPI Circle earlier, PhonePe’s entry amplifies accessibility, especially in semi-urban and rural areas.
The Bigger Picture
This launch aligns with PhonePe’s IPO preparations, as it aims to strengthen its market leadership. The fintech giant recently narrowed its FY24 net loss to ₹1,996 crore while boosting operating revenue by 74% to ₹5,064 crore.