India’s leading payments app, Paytm has launched Pocket Money, a feature that lets teenagers make Paytm UPI payments without needing their own bank account. Built on NPCI’s UPI Circle, the service is designed to let parents or trusted family members provide safe and controlled spending access to teenagers while retaining real-time visibility over their transactions from the Paytm app.
Under the feature, parents can invite a teenager through UPI Circle, set a monthly spending limit, and track their payments as they happen. To ensure a safe experience, individual transactions are capped at ₹5,000 and the monthly limit is set at ₹15,000 across the UPI network. The service works on savings and current accounts, with international payments and cash withdrawals restricted. Several safety controls are built in including payments being capped at ₹500 for the first 30 minutes after setup and ₹5,000 within the first 24 hours. Further, a device lock is mandatory, and parents can modify limits or revoke access instantly using their Paytm UPI PIN.
The feature is integrated with Paytm Spend Summary, which automatically categorises each payment so families can review spending patterns and manage allowances for their teens over time, building disciplined money habits. The feature is especially useful for families where teenagers currently rely on cash, borrow a parent’s phone, or send QR codes to parents to pay for school and college canteens, metro rides, cabs, mobile recharges, and online shopping. Payment history remains visible to the parent through the Paytm app at all times.
Here’s how to enable Paytm Pocket Money:
Step 1: Update the Paytm app from the App Store or Play Store
Step 2: Open the app and tap on ‘To Mobile / Contact’
Step 3: Select ‘Pocket Money’ to start setup
Step 4: Enter or select the contact you want to set up Paytm Pocket Money for
Step 5: Scan their UPI QR code or enter their UPI ID
Step 6: Complete verification using the required document details
Step 7: Set a monthly spending limit from the available options or enter a custom amount
Step 8: Select your primary bank account and enter your Paytm UPI PIN to complete setup
Step 9: The selected user must accept the invitation to activate Paytm Pocket Money