UPI Circle is a new and innovative payment solution designed to enhance the flexibility and convenience of digital transactions in India’s payment ecosystem. It allows a primary user, typically someone who manages a household or business finances, to authorize another individual, known as the secondary user, to perform UPI transactions on their behalf. This feature is particularly useful for those who either do not have a UPI-enabled bank account or are uncomfortable with digital payments.
Features of UPI Circle
- Delegated Authorization:
- The primary user can authorize a secondary user to make payments from their UPI account. This delegation comes with predefined limits, ensuring that the primary user retains control over their finances.
- Flexibility for Non-Account Holders:
- The secondary user, who may or may not have a bank account linked to UPI, can perform transactions using the primary user’s account. This feature is particularly beneficial for individuals who are unable to manage their own UPI accounts due to various reasons, such as age, lack of digital literacy, or personal preference.
- Risk Mitigation:
- UPI Circle is designed with adequate risk mitigations, ensuring that the primary user’s account is protected. The secondary user can only transact within the limits set by the primary user, reducing the risk of unauthorized spending.
- Minimal Intervention:
- Once the primary user has set the authorization, the secondary user can make payments with minimal intervention from the primary user. This streamlines the payment process and reduces the burden on the primary user.
Product Overview
UPI Circle caters to a growing need within the digital payment landscape by addressing the gap where cash is still predominantly used due to the lack of digital payment enablement. It provides a solution for scenarios where the primary user manages finances for others but wants to delegate payment tasks while maintaining control.
- Primary User: The individual who holds the UPI account and delegates payment authority to the secondary user. They manage the financial transactions and set limits on what the secondary user can spend.
- Secondary User: The individual who receives authorization to make payments using the primary user’s UPI account. This person can be someone without a bank account or someone who is not comfortable managing digital payments on their own.
Insight Behind the Feature
Despite the rise of UPI as a seamless digital payment method, cash remains a dominant payment instrument, especially for those who do not manage their own accounts or are wary of digital payments. UPI Circle is designed to bring these users into the digital payment fold by allowing someone else, typically a trusted person, to handle transactions on their behalf.
This feature is also aimed at streamlining the process for individuals who manage payments for others, such as parents for their children, employers for their employees, or spouses for each other. UPI Circle provides a secure and convenient way to delegate payment responsibilities without losing control over finances.
Possible User Stories
- Parent Delegating Spending to Their Child:
- A parent with a college-going child can authorize the child to use their UPI account for daily expenses like stationery, travel, and food. The parent sets spending limits and monitors the child’s expenses, ensuring that funds are used appropriately without the risk of carrying cash.
- Senior Citizen Wary of Digital Payments:
- A senior citizen who is uncomfortable with online transactions can delegate payment tasks to their children. The children can manage payments on behalf of the senior citizen, allowing them to shop without the stress of handling digital payments.
- Busy Professionals Delegating Household Expenses:
- A busy couple with demanding jobs can authorize their household help to make necessary purchases. The couple sets spending limits, ensuring that their budget is managed while freeing themselves from the need to handle every small transaction.
- Business Owner Delegating Petty Cash to Employees:
- A car rental service owner can allow drivers to pay for expenses like fuel using the owner’s UPI account. The owner sets limits on spending and can track all transactions, reducing the need to handle petty cash and improving financial control.
UPI Circle is a game-changer in the digital payment ecosystem, offering a flexible and secure way to delegate UPI transactions while maintaining control over spending. It is designed to bridge the gap for users who rely on cash or are hesitant to adopt digital payments, making UPI more accessible and convenient for a broader audience. With its focus on risk mitigation and user convenience, UPI Circle is set to redefine how digital payments are managed in everyday life.
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