Paytm launches Pocket Money for teens without bank accounts: Here’s how to set it up
Built on NPCI’s UPI Circle, the service enables parents to set spending limits, track transactions in real time.
Parents can now enable supervised UPI payments for teens with Paytm Pocket Money. (Image: Paytm) Payments app Paytm, on Friday, May 22, announced its new Pocket Money feature that allows teenagers to make Paytm UPI payments without having their own bank account.
The service, backed by NPCI’s UPI Circle, lets parents or trusted family members offer safe spending access to teens while maintaining real-time visibility over transactions from the Paytm app.
With the new feature, parents can invite a teenager via UPI Circle, set a monthly spending limit, and even track their payments in real time. The company said that to ensure safety, individual transactions are capped at Rs 5,000 with a monthly limit set at Rs 15,000 across the UPI network.
Paytm said that the service works on both savings and current accounts, with international payments and cash withdrawals restricted. Moreover, several safety controls are built in, such as the payment limit being capped at Rs 500 for the first 30 minutes after setup and Rs 5,000 within the first 24 hours. Additionally, a device lock is mandatory. It also allows parents to modify limits or revoke access instantly using their Paytm UPI PIN.
The company said that the feature is integrated with Paytm Spend Summary, which automatically categorizes each payment for families to review spending patterns and manage allowances for their teens.
How to enable Paytm Pocket Money
📌 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 amount.
📌 Select your primary bank account and enter your Paytm UPI PIN to complete setup.
📌 The selected user must accept the invitation to activate Paytm Pocket Money.
According to the company, the feature is 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. Further, the payment history will remain visible to the parent through the Paytm app at all times.
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