One 97 Communications Limited (Paytm) has announced the launch of 'Paytm Pocket Money', a new feature designed to enable teenagers to make Paytm UPI payments independently, even without a bank account. This feature allows parents and trusted family members to set monthly spending limits and monitor their teenagers' spending in real-time through the Paytm app. Teenagers can now make everyday payments for various needs like canteens, metro rides, shopping, and mobile recharges using Paytm UPI. Parents can invite teenagers via UPI Circle by NPCI, set individual payment caps at ₹5,000 and monthly limits up to ₹15,000 across the UPI network. The service is available for savings and current accounts, with restrictions on international payments and cash withdrawals. The feature integrates with Paytm Spend Summary, which automatically categorizes payments, helping families review spending patterns, manage allowances, and build responsible money habits. Safety controls include initial payment caps of ₹500 for the first 30 minutes and ₹5,000 within the first 24 hours. A device lock is mandatory, and spending limits can be modified or revoked instantly using the Paytm UPI PIN. Payment history is also accessible 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 the feature, users need to update their Paytm app, select 'Pocket Money', invite the teenager, set limits, and complete verification.
