Paytm, operated by One 97 Communications, has introduced a new service called Paytm Pocket Money, allowing teenagers to make UPI payments independently without needing a bank account. This initiative aims to empower teenagers while providing parents and family members with the ability to set monthly spending limits and monitor real-time payment activities.
The service is designed to cater to the growing trend of teenagers making everyday payments for school, college canteens, metro rides, cabs, and mobile recharges. Traditionally reliant on cash or parental assistance, teenagers can now manage their expenses digitally through the Paytm app. This development is expected to facilitate a transition to secure digital payments, with parents able to manage allowances and guide their children towards responsible financial habits.
Paytm Pocket Money allows parents and family members to invite teenagers through the UPI Circle by NPCI, setting monthly spending limits and tracking payments in real-time. Teenagers can make secure UPI payments across millions of merchants using their mobile phones, gaining financial independence without needing to borrow a parent’s phone or request OTPs. Individual payments are capped at ₹5,000, with 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.
An integration with Paytm Spend Summary categorises every payment, enabling families to monitor expenses, manage allowances effectively, and cultivate disciplined money habits over time. Paytm Pocket Money also includes safety controls, capping payments 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 revoked instantly using the Paytm UPI PIN. Payment history is visible through the Paytm app.
A Paytm spokesperson stated, “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.”
To enable Paytm Pocket Money, users must update the Paytm app, tap on ‘To Mobile / Contact’, select ‘Pocket Money’, enter or select a contact, scan their UPI QR code or enter their UPI ID, complete verification, set a monthly spending limit, select a primary bank account, and enter the Paytm UPI PIN. The selected user must accept the invitation to activate the service.
Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).