Paytm (One 97 Communications Ltd), India’s full-stack merchant payments leader serving MSMEs and enterprises, and the pioneer of mobile payments, QR codes and Soundbox, has announced the launch of Paytm Pocket Money.
The feature enables teenagers to make Paytm UPI payments without having their own bank account, while allowing parents and trusted family members to provide safe and controlled spending access with defined limits and real-time visibility on payments made through the Paytm app.
Brings supervised digital payments for teenagers
Across India, teenagers are increasingly making everyday payments for school and college canteens, metro rides, cabs, mobile recharges, shopping and more. Many still depend on cash or parents and family members to make payments for these expenses.
Paytm Pocket Money brings this behaviour into a secure digital format, allowing parents to manage allowances while introducing teenagers to Paytm UPI in a supervised manner.
With Paytm Pocket Money, parents and family members can invite teenagers through UPI Circle by National Payments Corporation of India (NPCI), set monthly spending limits, and track payments in real time.
Once activated, teenagers can make secure Paytm UPI payments across millions of online and offline merchants using the Paytm app on their own mobile phones.
Teenagers no longer need to borrow their parents’ phones, ask for OTPs, or send QR codes on WhatsApp to complete payments on their behalf.
Spending limits and safety controls
Parents or trusted family members can set up Paytm Pocket Money for teenagers, with individual payments capped at ₹5,000 and a monthly limit of ₹15,000 across the UPI network.
The service is available on savings and current accounts, with restrictions on international payments and cash withdrawals.
What sets Paytm Pocket Money apart is its integration with Paytm Spend Summary, where every payment is automatically categorised. This enables families to monitor expenses, manage allowances more effectively, and build disciplined money habits over time.
The feature also comes with inbuilt safety controls, 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, while spending limits can be modified or access can be revoked instantly using the Paytm UPI PIN. Payment history is also visible through the Paytm app.
Company commentary
A Paytm spokesperson said, “With Paytm Pocket Money, teenagers can start using Paytm UPI for everyday payments without needing their own bank account, while parents and family members stay in control. It brings pocket money into a safe digital format and helps families build responsible money habits early.”