PhonePe Launches UPI Circle Feature – In a bold move to redefine digital payments in India, PhonePe has launched the new UPI Circle feature, aimed at empowering users to delegate UPI payment access to trusted family members or associates—even if they don’t have a bank account. With digital inclusivity becoming a national focus, this innovation could dramatically improve how Indian households, small businesses, and the unbanked participate in UPI transactions.
As India leads the world in UPI adoption, this new PhonePe UPI Circle feature arrives at the perfect time. It gives users a controlled and secure way to share payment authority, particularly benefiting families, caregivers, and individuals managing group expenses. If you’ve ever wanted to let your kids, elderly parents, or staff make digital payments without handing over your bank details—this might be the game-changer you’ve been waiting for.
PhonePe Launches UPI Circle Feature
| Feature | Details |
|---|---|
| Launch Platform | PhonePe (UPI-powered digital payment app) |
| Main Benefit | Allows users to delegate UPI payment rights to others (without needing their own bank A/C) |
| Who Can Use It | Primary users (with bank-linked UPI ID); Secondary users (children, elderly, assistants) |
| Transaction Limits | ₹5,000 per transaction, ₹15,000 monthly cap |
| Number of Delegates | Maximum 5 secondary users per primary account |
| Security Controls | Approvals, spending limits, full transaction visibility, revocation ability |
| Use Cases | Family budgeting, school expenses, medical payments, house help wages |
| Integration | Works with UPI infrastructure, enabled by NPCI |
| Official Website | www.phonepe.com |
The PhonePe UPI Circle feature marks a new chapter in digital payments, one where convenience meets control. It not only promotes financial inclusivity but also provides a safe, scalable way to manage household or group expenses without exposing sensitive banking details. Whether you’re a parent, caregiver, or business owner, UPI Circle puts secure delegation at your fingertips.
With expert validation, strong security protocols, and NPCI’s support, UPI Circle is poised to become a national standard. Expect continued enhancements as digital payments evolve in India.
What Is the UPI Circle Feature on PhonePe?
UPI Circle is an advanced feature in the Unified Payments Interface (UPI) framework that allows the primary account holder to authorize secondary users to initiate payments using their UPI account. These secondary users don’t need a bank account of their own. Instead, they receive delegated authority—within set limits—to use the main account for everyday transactions.
This feature is currently live on PhonePe, and it aligns with the broader vision of financial inclusion, especially for non-tech-savvy users, children, and dependent family members.
Why UPI Circle Matters: Context & Use Cases
India has over 36 crore UPI users, and many of them often rely on others to make digital payments—like parents managing a child’s mobile top-up or an adult assisting an elder with medicine purchases.
Before UPI Circle, such scenarios required physically handing over a phone or making payments on behalf of someone. Now, users can digitally delegate access safely, making daily life easier for households, small businesses, and those supporting dependents.
Real-World Examples
- A mother wants to let her 16-year-old daughter pay for school stationery without handing over her ATM card.
- A son wants to enable his elderly father to pay the electricity bill via UPI, but his father doesn’t have a smartphone.
- A home owner wants to let their domestic help purchase groceries using a preset monthly budget.
How to Use UPI Circle on PhonePe – Step-by-Step Guide?
Here’s a detailed walkthrough to help you set up UPI Circle:
Step 1: Open PhonePe App
Ensure you have the latest version of the PhonePe app installed on your phone. You must be a bank-linked UPI user to be eligible as a primary account holder.
Step 2: Navigate to UPI Circle
On the homepage or under the ‘My Money’ section, select UPI Circle from the available options.
Step 3: Add a Secondary User
- Tap “Add Member”
- You can invite users by:
- Scanning their QR code
- Entering their UPI ID or mobile number
These users don’t need a linked bank account to start using the delegated UPI ID.
Step 4: Set Access Limits
You have full control to:
- Set transaction limits (e.g., ₹1,000 per day)
- Choose between full or approval-based delegation
- Full Delegation: The secondary user can transact up to the assigned limit without further permission.
- Approval Required: Each transaction needs real-time consent from the primary user.
Step 5: Monitor & Manage
Primary users can:
- Track all transaction history
- Revoke access at any time
- Adjust limits or remove secondary users
This keeps your funds secure while simplifying day-to-day payments.
Security and Privacy – Is It Safe?
Yes. According to PhonePe and NPCI (National Payments Corporation of India), the UPI Circle feature is built on secure, layered authorization protocols.
Key security provisions include:
- Transaction visibility for primary user
- Granular controls over spend limits
- Revocation option at any time
- Secondary users cannot view sensitive bank data
Also, the feature is compliant with UPI safety guidelines, ensuring the primary user’s credentials are never exposed or misused.
Who Can Benefit Most from UPI Circle?
While the feature is open to all, it’s especially beneficial for:
1. Parents of Teenagers
Let your children pay for tuitions, books, or online services without giving them card access.
2. Elderly Care
Enable your elderly parents to pay medical bills, utility bills, and groceries even if they don’t have a smartphone or aren’t tech-savvy.
3. Household Managers
From domestic help to drivers—easily allocate monthly budgets through UPI without risking access to your main bank account.
4. Joint Households
Families or flatmates can manage shared expenses efficiently using a controlled UPI delegation system.
5. Small Business Owners
Employers can empower field staff or shop employees to make routine purchases or collect payments without needing direct account access.
How It Compares with Google Pay and Paytm?
While the NPCI is expected to roll this feature out across other UPI apps like Google Pay, BHIM, and Paytm, PhonePe is currently the first mover to make it publicly available.
PhonePe’s Advantage:
- User-friendly interface
- Early access
- Wider acceptability with merchants and vendors
- Real-time transaction control
Expect other UPI apps to catch up soon, but for now, PhonePe leads the pack in secure UPI delegation features.
Expert Commentary: What Fintech Analysts Say?
Fintech expert Rohan Mehta from PayTech Insights explains: “UPI Circle is one of the most impactful steps towards delegated digital banking. It bridges the gap between financial literacy and digital access, and PhonePe’s early implementation sets a new industry benchmark.”
According to NPCI’s April 2025 statement, this model is expected to become part of a wider UPI 3.0 innovation framework, incorporating AI-based fraud prevention and adaptive spending rules in future updates.
Official Confirmation and Rollout Status
According to Economic Times, the feature was made available in April 2025 and is part of a broader initiative to empower non-bank account holders in the digital economy.
NPCI has also confirmed that the feature will soon become a standard UPI protocol across other apps under UPI 2.0+ enhancements.
Nvidia Under Threat? Huawei Debuts Breakthrough AI Chip Technology!
Instagram Introduces Blend: A New Way to Connect Over Reels!
Samsung Galaxy S25 Ultra Discounted to ₹99,999 – Check Out the Latest Deal!
FAQs About PhonePe Launches UPI Circle Feature
Q1. Can secondary users send and receive money from others?
No, they can only initiate payments using the primary user’s delegated UPI account. They cannot receive money.
Q2. What happens if the primary user disables the feature?
All secondary access is instantly revoked. They will not be able to transact until reauthorized.
Q3. Are there charges for using UPI Circle?
No. PhonePe does not charge users for enabling or using this feature.
Q4. Can I use this for business or staff members?
Yes. UPI Circle can be a great tool for small businesses to manage payments through staff while maintaining budget control.
Q5. Is this available on iOS and Android both?
Yes, as long as you have the latest PhonePe app version.
Q6. Will my bank account details be visible to secondary users?
No. Only the UPI ID and limited transaction access are shared. Sensitive banking information remains private.
