Paytm Launches Pocket Money Feature For Teenagers Without Bank Accounts

Mumbai: Paytm has launched ‘Pocket Money’, a new digital payments feature that allows teenagers to make UPI transactions without having their own bank account. The service enables parents and trusted family members to set spending limits, monitor transactions in real time, and encourage responsible money habits. Integrated with UPI Circle by NPCI, the feature aims to reduce teenagers’ dependence on cash and parents’ phones for daily payments while offering a secure and supervised digital payment experience.

Digital Payments For Teenagers

One 97 Communications Ltd, which operates Paytm, on Monday announced the rollout of ‘Paytm Pocket Money’, a feature designed to help teenagers carry out UPI-based payments independently through the Paytm app. The company said the service is intended to bring pocket money into a safer digital ecosystem while allowing parents to maintain financial oversight.

The feature allows teenagers to make payments for routine expenses such as school and college canteens, metro rides, cab bookings, mobile recharges, shopping and other daily transactions. Parents and trusted family members can activate the facility through UPI Circle by NPCI and assign customised monthly spending limits.

Reduced Dependence On Cash And Parents

Paytm said many teenagers continue to depend on cash or use their parents’ phones to complete digital payments. With the new feature, teenagers can use their own smartphones for transactions without asking parents for OTPs or requesting them to scan QR codes. Once enabled, users can make payments across millions of online and offline merchants supported on the UPI network.

The company has capped individual transactions at Rs 5,000, while the overall monthly transaction limit has been fixed at Rs 15,000. The facility is available on both savings and current accounts, although international transactions and cash withdrawals are not permitted under the feature.

Spend Tracking And Safety Controls

A major part of the offering is its integration with ‘Paytm Spend Summary’, which automatically categorises transactions and helps families analyse spending patterns. Paytm said this would help parents manage allowances more effectively and guide teenagers towards disciplined spending habits from an early age.

The feature also comes with multiple security measures. Payments are restricted to Rs 500 during the first 30 minutes after activation and Rs 5,000 within the first 24 hours. A device lock is compulsory, and parents can modify limits or revoke access instantly through their Paytm UPI PIN. Transaction history will also remain accessible through the Paytm application. A Paytm spokesperson said the new feature gives teenagers the ability to use Paytm UPI independently while ensuring that parents continue to stay in control of spending and supervision.

Disclaimer: This article is based solely on the company press release and regulatory filing issued by One 97 Communications Limited.