After Google Pay, PhonePe Rolls Out UPI Circle for Trusted Contact Payments

PhonePe has introduced a new feature called UPI Circle, allowing users to manage payments for family members and trusted contacts directly through its app. This feature enables a primary user to generate a UPI ID without linking a bank account, offering a digital payment solution to those with limited access to banking services.

With UPI Circle, users can invite others to their circle using a UPI ID or QR code. Once added, the primary user gains full control over approving or denying payment requests, monitoring spending, accessing transaction history, and removing users from the circle whenever needed.

Sonika Chandra, PhonePe’s Chief Business Officer for Consumer Payments, said that this feature aligns with the company’s goal of making digital payments more inclusive. It also makes handling shared expenses easier by creating secure and trusted payment networks.

The feature is now available on the PhonePe app. It follows a similar move by Google Pay, which launched UPI Circle and other features like eRupi and ClickPay last year.

Currently, PhonePe and Google Pay control over 80% of India’s UPI market. According to the National Payments Corporation of India (NPCI), PhonePe led in March with 864.7 crore transactions worth INR 12.57 lakh crore, while Google Pay handled 659.6 crore transactions.

This launch comes amid PhonePe’s preparations for a potential IPO. Financially, the company reduced its consolidated net loss by 28% to INR 1,996 crore in FY24, compared to INR 2,795 crore in FY23, while operating revenue jumped 74% to INR 5,064 crore.

PhonePe also recently exited its Account Aggregator (AA) business due to challenges in onboarding a sufficient number of financial data providers to the platform.

After Google Pay, PhonePe Rolls Out UPI Circle for Trusted Contact Payments

PhonePe has introduced a new feature called UPI Circle, allowing users to manage payments for family members and trusted contacts directly through its app. This feature enables a primary user to generate a UPI ID without linking a bank account, offering a digital payment solution to those with limited access to banking services.

With UPI Circle, users can invite others to their circle using a UPI ID or QR code. Once added, the primary user gains full control over approving or denying payment requests, monitoring spending, accessing transaction history, and removing users from the circle whenever needed.

Sonika Chandra, PhonePe’s Chief Business Officer for Consumer Payments, said that this feature aligns with the company’s goal of making digital payments more inclusive. It also makes handling shared expenses easier by creating secure and trusted payment networks.

The feature is now available on the PhonePe app. It follows a similar move by Google Pay, which launched UPI Circle and other features like eRupi and ClickPay last year.

Currently, PhonePe and Google Pay control over 80% of India’s UPI market. According to the National Payments Corporation of India (NPCI), PhonePe led in March with 864.7 crore transactions worth INR 12.57 lakh crore, while Google Pay handled 659.6 crore transactions.

This launch comes amid PhonePe’s preparations for a potential IPO. Financially, the company reduced its consolidated net loss by 28% to INR 1,996 crore in FY24, compared to INR 2,795 crore in FY23, while operating revenue jumped 74% to INR 5,064 crore.

PhonePe also recently exited its Account Aggregator (AA) business due to challenges in onboarding a sufficient number of financial data providers to the platform.