Paytm’s ‘Pocket Money’ feature lets teenagers make Paytm UPI (Unified Payments Interface) payments without needing their own bank account. Built on NPCI’s (National Payments Corporation of India) UPI Circle, the service is designed to let parents provide safe and controlled spending access to teenagers while retaining real-time visibility over their transactions from the Paytm app.
How Paytm Pocket Money works
Under the feature, parents can invite a teenager through , set a monthly spending limit, and track their payments as they happen. To ensure a safe experience, individual transactions are capped at ₹5000 and the monthly limit is set at ₹15000 across the UPI network.
The service works on savings and current accounts, with restrictions on international payments and cash withdrawals. “Several safety controls are ‘built-in’ including payments being capped at ₹500 for the first 30 minutes after set-up and ₹5000 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,” Paytm said.
The feature is integrated with Paytm Spend Summary, which automatically categorises each payment so that 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 to parents to pay for school and college canteens, metro rides, cabs, mobile recharges, and online shopping,” Paytm said. Payment history remains visible to the parent through the Paytm app at all times.
Here’s how parents can enable Paytm Pocket Money:
Step 1: Update the 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