PhonePe enables UPI Circle; Know how to use it

PhonePe launched UPI Circle on its app on April 15, 2025. UPI Circle allows users to create a sort of loop i.e. circle and make payments on behalf of their family, friends or trusted contacts i.e. delegated payments. UPI Circle enables dependents to generate their own UPI ID without needing a linked bank account. This enables secure online payment solutions for those with limited access to digital financial services.

How does UPI Circle work?
According to the National Payments Corporation of India (NPCI) website, UPI circle is a solution where a payer can extend the authorisation to transact from their Unified Payment Interface (UPI) account to an individual with required limits. It thus enables a secondary user to perform transactions from the payer’s account with minimum intervention and with adequate risk mitigations.

• Primary user: An UPI user who is delegating the UPI authentication to make payment to a secondary user.
• Secondary user: An UPI user who will be performing UPI payments with appropriate authorisation of the primary user. A secondary user is an individual with or without having a bank account linked on UPI.

How does UPI Circle on PhonePe work?
According to the press release dated April 15, 2025, 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 authorize 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.

Here’s a step by step guide on how to use UPI Circle on PhonePe:
Step 1: Open the PhonePe app. On the home screen, users will get the option to enable UPI Circle


Source: PhonePe press release

Step 2: To set up UPI Circle and link secondary users, tap ‘Invite Secondary Contact‘ by either scanning their QR code or manually entering the UPI ID


Source: PhonePe press release

Step 3: Secondary users must join the UPI Circle by accepting the invite received on their PhonePe app.

Step 4: Once added to the UPI Circle, secondary users can select the primary user’s account as a payment option to start making payments.

Sonika Chandra, Chief Business Officer, Consumer Payments, PhonePe said, “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 who may be wary of digital payments or busy individuals who want to delegate household chores. Integrating UPI Circle into the PhonePe app, aligns perfectly with our vision of democratizing digital payments and making financial services accessible to all. This innovative addition to the UPI stack offering simplifies shared expenses and empowers users to create trusted payment circles that streamline their financial interactions.”