Paytm Launches ‘Pocket Money’ Feature For Teenagers Using UPI

Paytm has launched a new feature called “Pocket Money” that enables teenagers to make UPI-based payments without needing their own bank account, while allowing parents and family members to supervise and manage spending activity.

The company said the feature is intended for teenagers who frequently make small day-to-day payments for expenses such as food, shopping, metro travel, mobile recharges and other routine purchases but still depend on cash or parental assistance for digital transactions.

Under the system, parents or trusted guardians can authorise access through the Paytm app, assign monthly spending limits and monitor transactions in real time.

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Teen Spending Gets Limits:

Once the feature is enabled, teenagers can independently use Paytm UPI on their smartphones without requiring their parent’s device or OTP verification for each transaction.

According to Paytm, payments under the feature will be capped at ₹5,000 per transaction, while the total monthly UPI spending limit will remain restricted to ₹15,000.

The company clarified that international transactions and cash withdrawals are not supported through the service.

Paytm also said the feature is integrated with its Spend Summary tool, which automatically categorises expenses and helps families track spending habits and manage allowances more efficiently.

To strengthen security, the company has introduced multiple spending controls and safety measures.

Transactions are limited to ₹500 within the first 30 minutes after activation and ₹5,000 during the first 24 hours.

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Parents Retain Spending Control:

Paytm added that a device lock is mandatory for usage, while parents can instantly adjust limits or disable access using their Paytm UPI PIN.

Commenting on the launch, a company spokesperson said the feature aims to help teenagers gradually adopt digital payment habits within a supervised and controlled environment.

“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,” the spokesperson said.

The company added that the initiative is designed to digitise pocket money in a safer format while encouraging responsible spending behaviour from an early stage.

To activate the feature, users need to update the Paytm app and select the “Pocket Money” option from the payments section.

Parents or guardians must then choose the contact they wish to enable the feature for, complete verification, define spending limits and authorise the setup using their Paytm UPI PIN. The feature becomes active after the teenager accepts the invitation.

The launch reflects the growing interest among fintech companies in creating supervised digital payment solutions tailored for younger users and family-based financial management.