Paytm has announced the launch of its new feature ‘Paytm Pocket Money’, designed to enable teenagers to independently make Paytm UPI payments without requiring their own bank account.
The initiative allows teenagers to carry out everyday digital transactions while ensuring parents and trusted family members maintain oversight through defined spending limits and real-time monitoring. The feature aims to digitise traditional pocket money practices, offering a structured and controlled environment for financial learning.
With increasing usage of digital payments among teenagers for school and college canteens, transport, shopping, and mobile recharges, Paytm Pocket Money seeks to reduce dependency on cash or parental assistance for routine transactions. The feature integrates with NPCI’s UPI Circle framework, enabling parents or guardians to invite teenagers, set monthly limits, and track all transactions in real time through the Paytm app.
Under the framework, individual payments are capped at Rs 5,000, with a monthly limit of Rs 15,000 across the UPI network. The service operates on savings and current accounts and excludes international payments and cash withdrawals. Safety measures also include a Rs 500 transaction cap for the first 30 minutes post-setup and a Rs 5,000 limit within the first 24 hours. Device lock is mandatory, and access or limits can be modified or revoked instantly using the Paytm UPI PIN.
A key feature of the offering is Paytm Spend Summary, which automatically categorises every transaction, enabling families to review spending behaviour, manage allowances more effectively, and encourage responsible financial habits over time.
A Paytm spokesperson said, “With Paytm Pocket Money, teenagers can start using Paytm UPI for everyday payments without needing their own bank account, while parents and family members stay in control. It brings pocket money into a safe digital format and helps families build responsible money habits early.”
To activate the feature, users are required to update the Paytm app and navigate to ‘To Mobile / Contact’, select ‘Pocket Money’, enter the recipient details, complete UPI verification, set spending limits, and confirm activation through UPI PIN authentication. The invited user must accept the request for the service to become active.
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