One 97 Communications Ltd., the parent company of Paytm, on Monday rolled out a feature called Pocket Money that allows teenagers in India to make UPI payments independently, without holding a personal bank account.
The feature targets the large share of Indian teens who currently rely on cash or borrow a parent’s phone to pay for everyday items.
Parents activate access, set monthly limits, and monitor transactions in real time, all from within the Paytm app.
How Paytm Pocket Money Works for Parents and Teens
The feature runs on UPI Circle, a delegated payments framework introduced by the National Payments Corporation of India (NPCI) in August 2024.
Under this structure, a parent or trusted family member acts as the primary account holder and grants the teenager controlled spending access through their own Paytm app.
To activate the feature, a parent opens the Paytm app, selects Pocket Money from the payments section, chooses a contact, sets a monthly limit, and confirms with their UPI PIN.
The teenager receives an invitation and must accept before the feature goes live.
Once set up, teens can pay across millions of online and offline merchants on the UPI network, covering canteen bills, metro rides, cab bookings, mobile recharges, and retail purchases. No OTP requests from parents, and no shared QR codes over messaging apps.
Spending Caps and Security Limits That Apply
Paytm has set firm transaction limits on the feature. Individual payments are capped at Rs 5,000 (approximately $58), and total monthly spending across the UPI network cannot exceed Rs 15,000 (approximately $175).
These figures match the ceiling set by NPCI for full delegation under UPI Circle.
A cooling period applies at activation. Payments are restricted to Rs 500 in the first 30 minutes, and Rs 5,000 within the first 24 hours. A device lock is mandatory for all secondary users, and international payments and cash withdrawals are blocked entirely.
Parents can modify limits or revoke access instantly using their Paytm UPI PIN. All transactions appear in Paytm Spend Summary, automatically categorised by payment type.
What This Means for Teen UPI Adoption in India
A Paytm spokesperson said the feature brings pocket money into a safe digital format and helps families build responsible money habits early, while keeping parents and family members in control.
The launch comes as competing platforms have also moved into teen-focused payments. Junio Payments received in-principle RBI approval in November 2025 to issue a UPI-linked digital wallet for children, while FamApp and Akudo already offer parental control features targeting the same demographic.
Paytm’s entry carries added weight given its network scale. UPI now has over 450 million registered users in India, giving Pocket Money immediate reach across an established merchant base.
The product also signals Paytm’s recovery push after regulatory setbacks. The Reserve Bank of India cancelled the banking licence of Paytm Payments Bank, though the payments app continues to operate under separate authorisation.
What Comes Next
Paytm has not disclosed a phased rollout schedule or a minimum age threshold for the feature.
The company says the feature is available now for users with savings or current accounts. No official expansion milestones have been announced.
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