Paytm Launches ‘Pocket Money’ Feature For Teenagers Without Bank Accounts

The new Paytm Pocket Money feature allows teenagers to make UPI payments without having their own bank account, while parents can monitor spending and set payment limits through parental controls.

Digital payments platform Paytm has launched a new feature called “Paytm Pocket Money” aimed at teenagers and children who use smartphones but do not have their own bank accounts.

The feature, launched on May 18, allows teenagers to make UPI payments using their mobile phones through Paytm without directly linking a personal bank account. Parents or guardians can transfer pocket money digitally, monitor spending activity and control transaction limits.

According to the company, the feature is based on NPCI’s “UPI Circle” system, which allows a primary UPI account holder to authorise trusted family members to make payments from the same linked bank account.

How The Feature Works

Parents can connect their children to the UPI payment system through the Paytm app. Teenagers can then make payments at shops, restaurants and online platforms using their own phones without repeatedly asking parents for phones, OTPs or cash.

The feature also includes transaction monitoring tools that allow parents to check payment summaries and spending records. Spending limits can be modified anytime using the parent’s Paytm UPI PIN.

Parents can also instantly disable access if required.

Spending Limits And Safety Features

Paytm has introduced several safety restrictions for the feature:

• Teenagers can spend a maximum of ₹15,000 per month
• Single transaction limit has been capped at ₹5,000
• During the first 30 minutes after setup, spending is limited to ₹500
• In the first 24 hours, spending cannot exceed ₹5,000
• Device lock protection is mandatory
• International payments and cash withdrawals are restricted

The company says these controls are designed to promote safer digital payment habits among teenagers while giving parents oversight of transactions.

How To Activate Paytm Pocket Money

Users must first update the Paytm app to the latest version from the Play Store or App Store.

After updating:

• Open the Paytm app
• Tap “To Mobile / Contact”
• Select the “Pocket Money” option
• Choose the teenager’s contact number or UPI ID
• Complete verification and link the bank account
• Set the monthly spending limit
• Enter the Paytm UPI PIN to complete setup

The teenager receiving access must then accept the invitation on their device.

Focus On Digital Financial Habits

Paytm says the feature is designed not only for convenience but also to help families teach responsible spending habits to children and teenagers in the growing digital payment ecosystem.

The company added that parents will continue to retain complete control over permissions, limits and account access throughout usage.

Disclaimer: Digital payment features, limits and eligibility may change over time. Users are advised to verify all details through the official Paytm app and follow standard cyber safety practices while using UPI services.