Designing a UPI Account Sharing Feature “Proxy Pay”

A UX Case Study on Solving Delegated UPI Payments Problem

The Problem

Ever wondered how your elderly parents, domestic helpers, or trusted family members could make payments using your UPI ID without constantly depending on you?

Millions of Indians face this challenge as they either don’t manage finances digitally or depend on others for transactions. Current UPI solutions don’t allow controlled delegation of payments while keeping the owner in charge.

User Personas

Primary User: Bharat (UPI Account Owner)

Secondary User: Anil (Trusted Payee)

Proposed Feature: “Proxy Pay” (UPI Circle)

A UPI Account Sharing feature integrated into existing UPI apps like Google Pay, PhonePe, or Paytm.

Key Features:

1. Payment Limits — NPCI can cap Proxy Pay transactions at ₹5,000 per transaction to reduce risk
2. Time Limits — Mr. Bharat can set a validity period (e.g., 1 day, 1 week) for Proxy Pay access
3. Multiple Trusted Contacts — Bharat can authorize up to 2 trusted individuals
4. Controlled Delegation — Bharat can revoke access at any time.
5. NPCI Compliance — Introduces a UPI e-mandate for P2P payments, extending beyond merchant transactions.

How It Works

Primary User — Setting up Proxy Pay by Account Owner 1️⃣ Bharat enables “Proxy Pay” in his UPI app and selects a trusted contact (Anil). 2️⃣ Sets a spending limit and duration (e.g., ₹5000 per day for 3 Hours).

Prototype: UPI Proxy Pay set up by Primary User (on Google pay)

Secondary User (by Trusted Payee) — Payment using Proxy Pay 1️⃣ Anil sees “Proxy Pay” as a payment option in his own UPI app. 2️⃣ Anil makes payments on Bharat’s behalf, while Bharat receives transaction alerts.

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A feature like Proxy Pay can bridge the digital finance gap in India, enabling trusted individuals to transact securely while ensuring the UPI account owner remains in control.

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