Paytm Pocket Money for teens: How teenagers can make Paytm UPI payments independently without a bank account

Paytm has introduced a new feature called Pocket Money that allows teenagers to make UPI payments even without having their own bank account, One 97 Communications, the parent company of Paytm informed via an exchange filing. The feature is designed to give teens controlled financial independence while keeping parents or trusted family members in charge of limits and monitoring.

With Pocket Money, parents can invite teenagers through UPI Circle (powered by NPCI) and set monthly spending limits along with real-time visibility into transactions. Once activated, teenagers can pay across online and offline merchants using the Paytm app on their own phone, without needing OTPs, cash handoffs, or parental assistance for every transaction.

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 Paytm members stay in control. It brings pocket money into a safe digital format and helps families build responsible money habits early.”

Here’s how to enable Paytm Pocket Money:

1. Update the Paytm app from the App Store or Play Store

2. Open the app and tap on ‘To Mobile / Contact’

3. Select ‘Pocket Money’ to start setup

4. Enter or select the contact you want to set up Paytm Pocket Money for

5. Scan their UPI QR code or enter their UPI ID

6. Complete verification using the required document details

7. Set a monthly spending limit from the available options or enter a custom limit

8. Select your primary bank account & enter your Paytm UPI PIN to complete setup

9. The selected user must accept the invitation to activate Paytm Pocket Money

Parents or a trusted family member can set up Paytm Pocket Money for their teenagers, with individual payments capped at ₹5,000 and a monthly limit of ₹15,000 across the UPI network. The service is available on savings and current accounts, with restrictions on international payments and cash withdrawals.

Paytm Pocket Money also comes with safety controls built in, where payments are capped at ₹500 for the first 30 minutes after setup and ₹5,000 within the first 24 hours. A device lock is mandatory, and spending limits can be modified, or access can be revoked instantly anytime using the Paytm UPI PIN. Payment history is also visible through the Paytm app.

The Paytm app may need to be updated to the latest version from the App Store or Play Store if the ‘Pocket Money’ option is not visible.