Paytm (One 97 Communications Limited) on May 18 announced the launch of Paytm Pocket Money. Teenagers pay through Paytm UPI without having their own bank account, the fintech firm said in a statement. Parents and other trusted family members can provide their children secure, regulated spending access with predetermined limits and constant tracking on their Paytm app payments, the statement said.
Teenagers in India are increasingly paying for essentials like shopping, mobile recharges, metro fares, cab rides, and school and college canteens on a daily basis. Many still rely on parents and other family members or funds to cover these expenses. By providing teens with a secure and regulated method to make digital UPI payments, Paytm Pocket Money seeks to address this issue while enabling parents to oversee and regulate their spending boundaries.
Paytm said, “With Paytm Pocket Money, teenagers can start using Paytm UPI for everyday payments without needing their own bank account, while parents and family Paytm members stay in control. It brings pocket money into a safe digital format and helps families build responsible money habits early.”
Benefits of Paytm Pocket Money
- Paytm Pocket Money allows parents and family members to establish monthly spending limitations, manage payments in real time, and invite children via UPI Circle by NPCI.
- Teenagers may use the Paytm app on their own phones to make safe Paytm UPI payments to online and offline retailers once it has been activated. Teenagers now don’t need to ask for OTPs, borrow their parents’ phones, or send them a QR code over WhatsApp in order to make payments on their behalf.
- Teenagers may use Paytm Pocket Money, which has a monthly cap of Rs 15,000 throughout the UPI network and an individual payment cap of Rs 5,000. This can be set up by parents or a trusted family member. There are limitations on overseas payments and cash withdrawals, but the service is accessible on savings and current accounts.
- The integration of Paytm Pocket Money with Paytm Spend Summary, which automatically classifies each payment, allows families to keep an eye on their spending, better manage their allowances, and gradually develop sound financial practices.
- Additionally, Paytm Pocket Money has built-in safety measures that limit payments to Rs 500 for the first 30 minutes after activation and Rs 5,000 for the first 24 hours. Spending limitations can be changed, or access can be immediately canceled using the Paytm UPI PIN, and a device lock is required.
- The Paytm app provides access to payment history as well.
How to set up Paytm Pocket Money?
- Open the updated Paytm app and tap on ‘To Mobile / Contact’.
- Now, to start the activation process, tap on ‘Pocket Money’ and enter the contact you want to set up Paytm Pocket Money for.
- Now, enter the UPI QR code or enter their UPI ID linked with the contact number.
- Now you need to verify the required documents to set up the account.
- To finish the setup, choose your primary bank account, input your Paytm UPI PIN, and establish a monthly spending limit using one of the preset options or a custom limit.
- To activate Paytm Pocket Money, the designated user must accept the invitation. If the “Pocket Money” option doesn’t appear, the Paytm app may need to be upgraded to the latest version from the App Store or Play Store.
The Bottom Line
Paytm Pocket Money is a product designed for teenagers who don’t have their own bank accounts yet, to make digital payments easy and safe. This feature is designed to enable young people to independently manage their daily expenses, with a regulated UPI access, while also allowing parents to control the spending limits and monitor transactions. The launch also points to the growing acceptance of digital payments among Indian youth. With features like real-time tracking, spending summaries, payment caps, and built-in security controls, Paytm aims to transform the traditional pocket money into a safe digital ecosystem for modern families.