Paytm Introduces Pocket Money Feature for Teen UPI Payments

Digital payments platform Paytm has introduced a new feature called Pocket Money, aimed at helping teenagers make UPI payments even without having their own bank account. The latest addition is designed to give parents greater control over their children’s daily spending while also making digital transactions easier for young users.

The feature works through the UPI Circle system developed by National Payments Corporation of India and allows parents to authorize payment access for teenagers directly from their own Paytm accounts. Through this setup, young users can pay for everyday expenses such as shopping, metro tickets, mobile recharges, snacks, or movie bookings without repeatedly depending on parents to scan QR codes during every transaction.

According to the company, parents remain fully in control of the account activity. Every transaction made through the Pocket Money feature is recorded and visible to them instantly. Users can also set monthly spending limits and modify access whenever required through the app settings.

The company has placed specific transaction restrictions to maintain safety and responsible spending. Individual transactions are capped at 5000 rupees, while the monthly limit has been fixed at 15000 rupees. During the first 30 minutes after account setup, users can send or withdraw only up to 500 rupees. Similar restrictions also apply during the first 24 hours for security purposes.

Paytm clarified that the service supports both savings and current bank accounts linked by parents. However, international transactions are not allowed through the Pocket Money feature. The app also requires users to keep their device protected with a screen lock for additional security.

Technology experts believe the feature could become popular among families where teenagers regularly depend on parents for small daily expenses. At the same time, parents benefit from transparent spending records that help them understand where and how money is being used.

Setting up the feature is relatively simple. Users first need to update the Paytm app and then choose the Pocket Money option under the contact or mobile payment section. Parents can invite a selected contact, add the user’s UPI ID or QR details, complete verification, set a spending limit, and connect their primary bank account using a UPI PIN. Once the invitation is accepted by the teenager, the feature becomes active for use.

The launch highlights the growing focus of digital payment companies on younger users and family centered financial tools. With India rapidly adopting cashless payments, features like Pocket Money are expected to encourage safe and supervised digital transactions among teenagers while helping parents maintain better financial oversight.