India’s digital payments space has evolved at a rapid pace, with UPI (Unified Payments Interface) becoming a household name. And just when you think the innovation cycle is slowing down, a new update shakes things up again. PhonePe, one of the country’s leading digital payment apps, has rolled out a new feature called UPI Circle. This move is not just a minor tweak—it’s a strategic upgrade aimed at solving a very real, everyday problem: the messiness of group payments.
Whether it’s splitting rent with roommates, settling restaurant bills with friends, or collecting funds for a group trip, managing shared expenses can be a tedious task. The new UPI Circle feature by PhonePe promises to bring structure, transparency, and convenience to these kinds of group transactions.
Let’s take a deep dive into what UPI Circle is, how it works, and what it means for you as a digital payment user in India.
What Is PhonePe’s UPI Circle?
The UPI Circle feature is PhonePe’s latest innovation that allows users to create private groups within the app for the purpose of making and managing shared UPI transactions. Imagine you and your friends have a monthly rent or Netflix subscription to share. Instead of keeping track manually or going back and forth on WhatsApp, you can now create a group, assign roles, and request payments—all within the PhonePe ecosystem.
The term “Circle” refers to the group of individuals you invite to be part of a specific payment context. It’s not just a one-off payment request but a more sustained, recurring interaction that brings visibility and structure to group finances.
Why Is It Needed?
For many Indians—especially students, working professionals living in shared accommodations, or anyone coordinating group events—shared expenses are part and parcel of daily life. Yet, there hasn’t been a simple, integrated tool within UPI apps to manage these collaborative financial interactions efficiently.
Before UPI Circle, most group transactions were done in silos. One person would pay and then manually follow up with others to get reimbursed. People would forget, pay late, or lose track. This often led to awkward reminders and, in some cases, unpaid dues.
With UPI Circle, PhonePe is directly addressing this problem by offering:
- Better transparency: Everyone in the group knows who has paid and who hasn’t.
- Automated reminders: No need to chase people—PhonePe can do it for you.
- Secure transactions: All payments happen via UPI, so you still benefit from its speed and safety.
How Does It Work?
To get started with UPI Circle, a user needs to create a group within the PhonePe app. Once the group is created, they can add up to ten members using their phone numbers. The group remains private, and only members can view or participate in the transactions.
The group admin can set a purpose—say rent sharing or a trip to Goa—and send payment requests to the other members. Everyone can contribute directly through the app, and all transactions are recorded within the group interface. This means you can revisit past payments, track who paid what, and manage future collections seamlessly.
It’s not limited to just one-off payments either. UPI Circle supports recurring payment contexts, which is ideal for monthly rent, utility bills, or subscription costs.
Where Is It Currently Available?
As of now, PhonePe has launched UPI Circle as a pilot feature in Maharashtra and Delhi. This controlled rollout will help the company gather user feedback, monitor usage behavior, and make necessary enhancements before taking it national.
Given that PhonePe has a strong presence across the country with over 500 million registered users, it’s only a matter of time before this feature reaches a broader audience. In fact, the phased approach ensures better scalability and stability once it’s deployed nationwide.
The Bigger Picture: How This Could Change UPI Usage
UPI’s growth has already been phenomenal, clocking over 13 billion transactions per month in India. But most of these are still individual-to-individual (P2P) or merchant-based. Group payments have remained largely informal.
UPI Circle could help formalize and standardize this untapped space of peer groups. If successful, it might even trigger a new behavioral shift—where users form dedicated Circles for recurring transactions, much like people use group chats or Telegram channels for communication.
This is particularly significant in India, where community-based decision-making and shared finances are culturally ingrained. From joint families managing household expenses to startup teams pooling funds, the use cases are endless.
Security and Privacy
PhonePe has emphasized that all UPI Circle transactions will follow the same secure protocols as regular UPI transactions. Since only invited members can join a Circle and view transactions, the risk of external interference is minimal.
Additionally, since the feature operates within the app, users don’t need to rely on third-party platforms or messaging apps to coordinate payments. This keeps sensitive financial data within the secure environment of the PhonePe app, reducing the risk of fraud or data leaks.
How to Use the Feature Once It Reaches You
While the feature is still in limited release, here’s what you can expect once it becomes available in your region:
- Open your PhonePe app and look for the “UPI Circle” option under the Payments section.
- Click on “Create a Circle” and name it based on its purpose—e.g., “Flatmates Rent.”
- Add up to ten members by entering their mobile numbers.
- Set a payment amount and reason, then hit “Request Payment.”
- Track contributions and send automated reminders if needed.
The user interface is designed to be intuitive, requiring minimal learning for even first-time users.
Final Thoughts
The launch of UPI Circle by PhonePe is more than just a feature update—it’s a step toward reimagining how digital payments function in social contexts. It tackles a real-world problem with a tech-first solution, adding value to millions of Indians navigating shared expenses.
While it’s still in the testing phase, the implications of this rollout are significant. It could streamline how people handle group money matters, reduce interpersonal friction, and increase UPI adoption for more diverse use cases.
As we move towards a more digitally integrated financial future, tools like UPI Circle could become the new norm. Keep an eye out for this feature—it might just make your next rent payment or trip plan a lot less stressful.
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