Paytm has launched a new feature aimed at enabling teenagers to make Paytm UPI payments without having their own bank account.
The feature, called Paytm Pocket Money, is designed to support real-time payments for everyday spends while giving parents and trusted family members controls within the Paytm app.
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The service is intended for common teen payment needs such as school and college canteens, metro rides, cabs, mobile recharges and shopping.
Paytm Pocket Money also allows families to set spending limits and track transactions in real time.
With Paytm Pocket Money, parents and family members can invite teenagers through UPI Circle by the National Payments Corporation of India (NPCI). After setup, they can set a monthly spending limit and monitor payments as they occur.
Teenagers can then make Paytm UPI payments at online and offline merchants using the Paytm app on their own phone.
Paytm said the feature removes the need for teenagers to borrow a parent’s device, request OTPs, or share QR codes over messaging platforms to complete payments.
Paytm Pocket Money caps individual transactions at Rs5,000 ($52), with a monthly limit of Rs15,000 ($156) across the UPI network. The feature is available for users with savings and current accounts.
International payments and cash withdrawals are not supported.
The service is integrated with Paytm Spend Summary, where payments are automatically categorised. This allows families to review spending patterns and manage allowances through transaction-level details in the app.
Additionally, parents and family members can modify limits or revoke access instantly using the Paytm UPI PIN.
A Paytm spokesperson said: “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.”
The launch comes amid recent regulatory action involving Paytm Payments Bank.
The Reserve Bank of India (RBI) recently withdrew the banking permit granted to the bank, citing concerns that its affairs were being run in a manner that harmed the interests of the institution and its depositors.
