Paytm has launched ‘Paytm Pocket Money’, a feature that enables teenagers to make Paytm UPI payments without having their own bank account. The offering is aimed at enabling supervised digital payments for teenagers while allowing parents and trusted family members to set spending controls and monitor transactions in real time.
The feature has been introduced through NPCI’s UPI Circle framework, under which parents or trusted family members can invite teenagers to access UPI payments through the Paytm app. Once activated, teenagers can make payments across online and offline merchants using their own mobile devices without requiring access to a parent’s phone, OTP approvals, or cash payments.
According to the company, Paytm Pocket Money can be used for routine transactions including school and college canteens, metro rides, cabs, mobile recharges, shopping, and other day to day expenses. Parents and family members can define monthly spending limits and access transaction visibility through the Paytm app.
Under the UPI network guidelines, individual payments are capped at Rs 5,000, while the monthly transaction limit is restricted to Rs 15,000. The feature is available for savings and current accounts. International payments and cash withdrawals are not permitted under the service.
Paytm Pocket Money is integrated with Paytm Spend Summary, which categorises transactions automatically to help families review spending patterns, manage allowances, and monitor payment activity.
The company stated that the feature includes multiple safety controls, including a payment cap of Rs 500 during the first 30 minutes after setup and a limit of Rs 5,000 during the first 24 hours. A device lock is mandatory for activation. Parents and trusted family members can modify spending limits or revoke access instantly using the Paytm UPI PIN. Transaction history is also accessible through the Paytm app.
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 PaYtm members stay in control. It brings pocket money into a safe digital format and helps families build responsible money habits early.”
