Digital payments company on Monday, 18 May launched Paytm Pocket Money, allowing teenagers without a bank account to make UPI payments.
In a disclosure statement sent to the Bombay Stock Exchange (BSE), Paytm said that with this new launch teenagers can make UPI payments independently, “without relying on cash or a parent to complete payments on their behalf.”
Paytm Pocket Money also allows parents or any trusted family member to set monthly spending limits and keep real time visibility on their teenagers’ UPI spends through the platform.
“With Paytm Spend Summary, families can review spending patterns, manage allowances better, and guide teenagers toward safe, responsible money habits early,” the company said in a statement.
The feature is aimed at helping teenagers and students with everyday payments for school and college canteens, metro rides, cabs, mobile recharges, shopping, etc. At the same time, it allows parents to manage allowances while introducing their teenagers to digital payments in a supervised way.
How can you use Paytm Pocket Money?
Parents and family members can invite their teenagers using the UPI Circle feature rolled out by the National Payments Corporation of India (NPCI) in August 2024.
allows a primary UPI user — typically one who has a linked bank account — to grant access to a trusted person like spouse, family member or friend and authorise them to become the secondary user of the same bank account for UPI transactions. In short, it allows multiple individuals to share a single UPI ID, whilst managing access and setting transaction limits.
Once activated, teenagers can make secure UPI payments across millions of merchants using the Paytm app on their own mobile phone.
“Teenagers gain independence and now no longer need to borrow their parent’s phone, ask for OTPs, or send QR on whatsapp to their parents to complete payment on their behalf,” the company statement said.
The service is available on savings and current accounts, with restrictions on international payments and cash withdrawals.
How to set limits?
Parents or guardians can set up Paytm Pocket Money for their teenagers, with individual payments capped at ₹5,000 and a monthly limit of ₹15,000 across the UPI network.
Paytm Pocket Money also comes with safety controls inbuilt where payments are capped at ₹500 for the first 30 minutes after setup; and ₹5,000 within the first 24 hours.
A device lock is mandatory, and spending limits can be modified or access can be revoked anytime instantly using the Paytm UPI PIN. Payment history is also visible through the Paytm app.
How to enable Paytm Pocket Money?
Here is step-by-step guide to activate Paytm Pocket Money on your Android or iOS mobile phones:
- Update the Paytm app from the App Store or Play Store
- Open the app and tap on ‘To Mobile / Contact’
- Select ‘Pocket Money’ to start setup
- Enter or select the contact you want to set up Paytm Pocket Money for
- Scan their UPI QR code or enter their UPI ID
- Complete verification using the required document details
- Set a monthly spending limit from the available options or enter a custom limit
- Select your primary bank account & enter your Paytm UPI PIN to complete setup
- The selected user must accept the invitation to activate Paytm Pocket Money
Please note that the Paytm app may need to be updated to the latest version from the App Store or Play Store if the ‘Pocket Money’ option is not visible.