Amazon Payment, Google Pay and National Payments Corporation of India (NPCI)-run Bharat Interface for Money (Bhim) is testing the feature, UPI Circlein a closed user group and are expected to be available in the coming months.
TelephonePethe largest third-party app on UPI, is also testing the product, ET has learned.
NPCI officially launched the UPI Circle last week in the World Financial Technology Festival in Bombay.
UPI Circle is a delegated payment method where the primary user can give permission to a secondary user to make transactions. The primary user can either authenticate each transaction or set a limit of up to Rs 15,000 within which any transaction can be made without explicit permission.
“This feature can be widely used by seniors and children, especially in households where there is a bank account… It will be enabled within a trusted network,” he said. Vikas BansalCEO of Amazon Pay.
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Many new users will be activated on UPI, he said.Read also | Reserve Bank of India Governor Shaktikanta Das’ five-point agenda for India’s financial future at GFF 2024
Some of the potential use cases listed on NPCI’s site include college students making cashless payments using their parents’ UPI accounts, housemaids making purchases on behalf of their employers, and drivers filling up fuel on behalf of car owners.
“Given the frauds that occur in digital payments and the vulnerability of children and senior family members, UPI Circle will keep the control of the product in the hands of the primary account holder,” a senior executive of a Bengaluru-based payments major said on condition of anonymity.
Industry experts said the feature where the primary user will have to authenticate every transaction made by the secondary user is expected to see wider adoption.
Read also | GFF 2024: Fintechs, regulations and cautious growth
The executive cited above said that NPCI has been trying to increase the active user base on UPI, and young and older consumers have been on its radar for some time. The idea is to get the UPI user base to cross the 300 million mark and have more active users on the platform.
In a blog post published on August 30, Google said UPI Circle will help take another step towards a more inclusive and convenient financial ecosystem.
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