Paytm has launched a new Pocket Money feature that allows children and teenagers to make UPI payments even without having their own bank account.
The main benefit of this feature is that parents can monitor their children’s spending and also set payment limits according to their needs.
Usually, children need their parents’ phone or OTP approval for every payment. Paytm introduced this feature to solve that problem and make digital payments easier for teenagers.
The company says that the feature will help children learn and develop the habit of making digital payments while parents continue to have full control over expenses.
For safety, several security features and spending limits have also been added.
How the Paytm Pocket Money Feature Works
The Paytm Pocket Money feature is based on the NPCI’s UPI Circle system. Through this system, parents or trusted family members can give payment access to children without opening a separate bank account for them.
In this setup, payments are made using the child’s mobile phone, but the money is directly deducted from the parent’s bank account.
Because of this, teenagers can make payments independently without asking for OTPs or using their parents’ phones every time.
Teenagers can use this feature for many daily expenses such as:
Paying at school or college canteens
Booking metro tickets and cabs
Recharging mobile phones
Ordering food online
Small shopping payments
According to the company, many teenagers want to use digital payments today, but they often face problems because they do not have their own bank account or debit card.
Parents Will Have Full Control
One of the biggest advantages of this feature is that parents will have complete control over the account. Parents can monitor spending and can also block access instantly whenever needed.
This gives children some digital freedom while also keeping payments secure and safe.
Paytm has also added several limits to prevent misuse of the feature:
Maximum payment per transaction: ₹5,000
Maximum monthly spending limit: ₹15,000
Spending limit during the first 30 minutes after activation: ₹500
Maximum spending allowed in the first 24 hours: ₹5,000
How to Activate the Paytm Pocket Money Feature
Activating the feature is very simple:
Step 1
Update the Paytm app first. Then go to the Mobile/Contact section and select the Pocket Money option.
Step 2
Add the child’s mobile number or UPI ID for whom you want to enable the feature. After that, complete the document verification process and set the spending limit.
Step 3
Enter the Paytm UPI PIN. The teenager will then receive an invitation, and the feature will become active after accepting it.
