Paytm has introduced a new feature called Paytm Pocket Money, allowing teenagers to make UPI payments even if they do not have their own bank account.
The feature is designed to help teens pay for daily expenses like shopping, mobile recharges, metro rides, cab fares, and school or college canteen bills using the Paytm app.
At the same time, parents and trusted family members remain in control by setting spending limits and tracking payments in real time.
How Paytm Pocket Money Works
With Paytm Pocket Money, teenagers can use Paytm UPI on their own smartphones without needing to borrow a parent’s phone or ask for OTPs every time they make a payment.
Parents can activate the feature through the Paytm app using NPCI’s UPI Circle system.
Once enabled, teens can make payments at both online and offline stores.
The service comes with:
A monthly spending limit of Rs 15,000
A maximum limit of Rs 5,000 per transaction
Real-time payment tracking for parents
Built-in security and spending controls
Paytm says the feature is aimed at helping families introduce responsible digital spending habits at an early age.
Safety Features Included
To improve security, Paytm has added several safety measures to the new feature.
For the first 30 minutes after activation, payments are limited to Rs 500.
During the first 24 hours, users can spend only up to Rs 5,000.
Parents can also:
Change spending limits anytime
Monitor transaction history
Block access instantly using their Paytm UPI PIN
View categorized spending summaries through the Paytm Spend Summary feature
The platform also restricts cash withdrawals and international payments.
Step-by-Step: How to Set Up Paytm Pocket Money
Setting up the feature is simple and can be done through the updated Paytm app.
Here’s how:
Open the Paytm app and tap on “To Mobile / Contact”
Select the “Pocket Money” option
Choose the contact for whom you want to activate the feature
Enter the UPI ID or scan the UPI QR code
Complete document verification
Select your primary bank account
Enter your Paytm UPI PIN
Set a monthly spending limit
The teenager will then receive an invitation, which must be accepted to activate the service.
If the Pocket Money option is not visible, users may need to update the Paytm app from the Play Store or App Store.
Why This Feature Matters
Digital payments are becoming increasingly common among teenagers in India.
However, many still depend on parents’ bank accounts or phones to complete everyday transactions.
Paytm Pocket Money aims to solve this problem by giving teenagers controlled access to digital payments while allowing parents to monitor spending safely.
The launch also highlights how fintech companies are focusing more on young users and family-friendly financial tools as digital payments continue to grow across India.
