DBT Bureau
Pune, 18 May 2026
Paytm announced the launch of Paytm Pocket Money. It enables teenagers to make Paytm UPI payments without having their own bank account, while allowing parents and trusted family members to provide safe and controlled spending access with defined limits and real time visibility on their child’s payments made through the Paytm app.
Across India, teenagers are increasingly making everyday payments for school and college canteens, metro rides, cabs, mobile recharges, shopping, and more. Many still depend on cash or parents and family members to make a payment for these expenses. Paytm Pocket Money brings this behaviour into a secure digital format, allowing parents to manage allowances while introducing teenagers to Paytm UPI in a supervised way.
With Paytm Pocket Money, parents and family members can invite teenagers through UPI Circle by NPCI, set monthly spending limits, and track payments in real time. Once activated, teenagers can make secure Paytm UPI payments across millions of online and offline merchants using Paytm app through their own mobile phone. Teenagers gain independence and now no longer need to borrow their parent’s phone, ask for OTPs, or send QR on whatsapp to their parents to complete payment on their behalf. 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.
What sets Paytm Pocket Money apart is its integration with Paytm Spend Summary, where every payment is automatically categorized, enabling families to monitor expenses, manage allowances more effectively, and build disciplined money habits over time.
Paytm Pocket Money also comes with safety controls inbuilt 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 anytime instantly using the Paytm UPI PIN. Payment history is also visible through the Paytm app.
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.”
Here’s how to enable Paytm Pocket Money:
- Update the Paytm app from the App Store or Play Store
- Open the app and tap on ‘To Mobile / Contact’
- Select ‘Pocket Money’ to start setup
- Enter or select the contact you want to set up Paytm Pocket Money for
- Scan their UPI QR code or enter their UPI ID
- Complete verification using the required document details
- Set a monthly spending limit from the available options or enter a custom limit
- Select your primary bank account & enter your Paytm UPI PIN to complete setup
- The selected user must accept the invitation to activate Paytm Pocket Money
