The feature is built on the UPI Circle framework of National Payments Corporation of India and is designed to let teenagers carry out everyday digital payments independently, while parents or guardians retain oversight through limits and real-time visibility.
How it works
Under Paytm Pocket Money, a parent or trusted family member can invite a teenager through the Paytm app and link their account using UPI Circle. Once the setup is completed, the teenager can use Paytm UPI for payments at merchants accepting UPI.
Parents can:
- Set monthly spending limits for the teenager
- Monitor transactions in real time
- Modify or revoke access at any time
Teenagers can use the feature to make routine payments such as transport fares, canteen bills, mobile recharges, and small retail purchases directly from their phone.
Key conditions and controls
The company has included multiple usage safeguards. Transaction limits are applied, including caps on individual payments and overall monthly spending. Additional restrictions apply during the initial usage period, where lower limits are enforced for security reasons. Device verification and standard UPI PIN authentication are also required for transactions.
According to the company, spending summaries within the app categorise transactions to help families track usage patterns and manage allowances.
How to enable Pocket MoneyTo activate the feature, users need to:
- Update the Paytm app to the latest version
- Open the app and go to “To Mobile / Contact”
- Select “Pocket Money”
- Choose or enter the teenager’s contact details
- Scan the UPI QR code or enter UPI ID
- Complete verification steps
- Set a monthly spending limit
- Select the linked bank account and confirm using UPI PIN
- The teenager must accept the invitation to activate the service
The feature is available only after activation by both the parent/guardian and the teenager through the Paytm app.
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First Published: May 18, 2026 1:56 PM IST
