PhonePe Launches UPI Circle Feature, Enables Easy Payments for Family and Friends

In a significant move aimed at simplifying digital transactions, PhonePe has unveiled a new feature called UPI Circle on its app as of April 15, 2025. This new functionality empowers users to make payments on behalf of others—including family members, friends, or trusted individuals—who may not have their own bank-linked UPI accounts.

This innovative solution is particularly beneficial for individuals who either don’t have access to banking services or are not digitally savvy. Whether it’s parents sending money to their kids, adults assisting elderly family members, or household managers paying utility bills, UPI Circle offers a secure and flexible way to manage multiple people’s payments from a single account.

"PhonePe, today announced the launch of UPI Circle on its app, allowing its users to create a circle and make payments on behalf of their family, friends or trusted contacts. UPI Circle enables dependents to generate their own UPI ID without needing a linked bank account, opening up secure online payment solutions for those with limited access to digital financial services."

What Is UPI Circle?

A Feature Built by NPCI for Delegated UPI Payments

UPI Circle is a feature designed by the National Payments Corporation of India (NPCI) that allows primary users (typically account holders) to authorize secondary users to carry out transactions on their behalf—within predefined limits.

Key Highlights:

• Primary User: The main account holder who retains full control over payments, authorizations, and account activity.

• Secondary User: A trusted person (can be unbanked) who is allowed to make payments through the primary user’s UPI account.

This structure allows a seamless and safe way to extend UPI services to those who may not have direct access to digital banking.

How UPI Circle Works on PhonePe

Simple Setup, Full Control

Using the PhonePe app, users can easily configure their UPI Circle by adding a trusted contact using either a UPI ID or by scanning a QR code. Once added, the secondary user is granted controlled access to make payments through the primary user's UPI account.

"With UPI Circle on PhonePe, a UPI account holder (primary user), can add their family/trusted individuals (secondary user) to their circle using UPI ID or QR code and seamlessly authorise payments for them from anywhere. The primary user retains complete control over the usage, including the ability to review payment requests, track secondary user expenses, get secure access to detailed payment records within each circle and delink access from their UPI Circle, as needed," mentioned the press release.

Step-by-Step Guide to Using UPI Circle on PhonePe

Getting Started:

1. Open the PhonePe app.

2. Tap on the UPI Circle icon on the home screen.

Add a Secondary User:

3. Select ‘Invite Secondary Contact’.

4. Enter the contact’s UPI ID or scan their QR code.

5. Once they accept the invite, they’ll be added to your circle and can start making payments—with the limits and conditions you set.

Why It Matters: Bridging the Digital Divide

According to Sonika Chandra, Chief Business Officer at PhonePe,

“This is a big step towards making digital payments simpler for the underbanked or those new to digital transactions.”

India’s digital economy is rapidly expanding, with UPI (Unified Payments Interface) now accounting for more than 50% of retail digital payments. Features like UPI Circle further democratize financial technology by bringing dependents, seniors, and unbanked individuals into the fold without needing separate bank accounts.