PhonePe, a major digital payments platform in India, has rolled out UPI Circle, a new feature that allows users without bank accounts to perform UPI transactions. As reported, this development aims to make digital payments accessible to millions who lack online banking services.
Through UPI Circle, a primary account holder can link up to five secondary users to their UPI account. These secondary users can create their own UPI IDs without requiring a bank account, enabling seamless transactions for family members or trusted contacts. It highlights that this feature is particularly valuable for underbanked individuals or those unfamiliar with digital banking.
The process involves the primary user inviting secondary users using a UPI ID or QR code. After being added, secondary users can select the primary user’s account to make payments, with each transaction requiring the primary user’s approval via biometric or passcode authentication. This setup ensures security while expanding digital payment access.
Sonika Chandra, Chief Business Officer for Consumer Payments at PhonePe, underscored the feature’s role in promoting financial inclusion. “UPI Circle marks a significant advancement in bringing the simplicity and convenience of digital payments to the underbanked and newcomers to the digital ecosystem,” she told .
With nearly 48% of India’s UPI market share, PhonePe continues to lead innovation in the digital payments space, competing with platforms like Google Pay and Paytm. The introduction of UPI Circle reinforces its commitment to making transactions inclusive and secure for all.