Google Pay’s UPI Circle announced in India; here’s what you need to know

Google Pay was initially introduced as Google Wallet back in 2011. It was then coined as Android Pay in 2015 and finally became Tez by Google in 2018. The app made its way to India on September 18, 2017, and is now popularly recognised as Google Pay.

Only a few weeks ago, Google mentioned how a new UPI feature would be introduced to simplify financial transactions for people who may not have access to a bank account or are hesitant to use digital payment methods. The new feature, known as UPI Circle, is all set to be rolled out to users in India. Here is what it is and everything it can do.

Google Pay: UPI Circle

UPI Circle was developed to bridge the gap for those who are still dependent on cash. This feature will allow trusted friends or family members who can help them make digital payments on their behalf. UPI Circle will be launched in collaboration with the National Payments Corporation of India.

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This feature allows the primary user, the one who owns the account, to delegate digital payments to trusted contacts like family members or friends. Instead of requiring the secondary user to be linked to the bank account, UPI Circle offers the option to make the payment through the primary user’s account. This provides an easy and convenient way out.

UPI Circle: Types of delegation

The Google UPI Circle will be beneficial to households where older members of the family may not be comfortable with digital payments. However, two types of delegations can be provided. They are as follows:

Full Delegation: The primary user can set a monthly limit, of up to Rs 15,000 allowing the secondary user to make payments independently within that limit. This doesn’t require any further approvals from the primary user.

Partial Delegation: The primary user retains full control over every transaction that is being initiated by any of the secondary users. The primary user receives a request to approve each payment.

Additionally, there is a 30-minute cool-off period after linking a secondary user, during which no transactions can be made. This adds an extra layer of security.

How you can setup your UPI Circle

This feature will soon be rolled out across Android and iOS smartphones, and users will need to update their app to begin using it. Here’s how you can set it up.

It is also crucial to note that the primary account holder will need to have an active bank account linked to Google Pay. However, the secondary user can only have a UPI ID and their contact number must be saved in the primary user’s contact list beforehand.

In order to make payments through the primary account, the secondary user will have to open their UPI app and tap on the QR code. The primary user will then access the UPI Circle section, scan the QR code, and select a delegation type. The secondary user will then need to accept the invitation to finalise the setup.

A primary user can add up to five secondary users. However, each secondary user can only be part of one UPI Circle at a time. For other tech updates and news, make sure you stay subscribed to Unboxed by Croma.