Paytm has launched Paytm Pocket Money, a new feature that allows teenagers to make UPI payments even if they do not have their own bank accounts.
The feature is built on NPCI’s UPI Circle framework, which enables parents or family members to give controlled UPI access to teenagers through the Paytm app. This means teenagers can pay from their own phones, while parents continue to set limits and monitor transactions.
The feature is aimed at everyday spending needs such as school and college payments, auto rides, cabs, mobile recharges and shopping. Parents can set monthly spending limits and track transactions in real time.
Each transaction under Pocket Money is capped at Rs 5,000, while the total monthly limit across the UPI network is Rs 15,000. The service works with savings and current accounts, but international payments and cash withdrawals are not allowed.
For families, the biggest change is convenience. Teenagers no longer need to use a parent’s phone, card details or QR codes shared on messaging apps for routine payments. They can make payments directly from their own device, but within boundaries set by the parent.
Paytm has also connected Pocket Money with its Spend Summary tool. This categorises transactions and helps families track spending patterns and manage allowances more clearly.
The feature includes multiple safety controls. During the first 30 minutes after setup, transactions are limited to Rs 500. In the first 24 hours, the limit is capped at Rs 5,000. A device lock is mandatory, and parents can modify limits or revoke access anytime using their Paytm UPI PIN.
Pocket Money is available on the latest version of the Paytm app on Android and iOS.
The launch also marks a shift in India’s teen payments space. Earlier, fintech startups such as FamPay, Walrus and Junio offered supervised spending products for minors using prepaid cards and wallets. Some players later faced pressure after RBI restrictions around co-branded PPI-based UPI products. Paytm’s new product takes a different route by using NPCI’s UPI Circle framework, allowing delegated UPI payments without requiring teenagers to open bank accounts.
For parents, Pocket Money brings control. For teenagers, it brings independence. For India’s digital payments market, it signals a fresh push toward family-linked UPI usage, where financial access can begin before a young user has a bank account of their own.
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