Launch · Financial Services

Paytm launches Pocket Money for teenagers to make UPI payments without bank accounts

What they do

Paytm allows teenagers to make UPI payments without needing their own bank account through its new feature called Pocket Money

Parents or trusted family members can set spending limits and monitor transactions in real time through the Paytm app

The feature is built on NPCI’s UPI Circle framework and is available on the latest version of the Paytm app for Android and iOS

Paytm launched a new feature called ‘Pocket Money’ on 18 May 2026, allowing teenagers to make UPI payments without needing their own bank account.
The feature is built on the National Payments Corporation of India’s UPI Circle framework, enabling delegated UPI payments.
Parents or trusted family members can provide controlled payment access through the Paytm app, with real-time monitoring of spending.
Teenagers can use the service for everyday transactions such as school and college canteens, metro rides, cab fares, mobile recharges, and shopping.
The feature allows payments to be made using the teenager’s own phone, without needing to borrow a parent’s device, request one-time passwords, or share QR codes over messaging apps.
Individual transactions are capped at Rs 5,000, and the total monthly limit is Rs 15,000 across the UPI network.
The service is available on savings and current accounts, but international payments and cash withdrawals are not permitted.
The feature is integrated with Paytm’s ‘Spend Summary’ tool, which categorises transactions to help families track expenses and manage allowances.
Security measures include a Rs 500 transaction limit during the first 30 minutes after activation and a Rs 5,000 cap within the first 24 hours.
A device lock is mandatory, and parents can instantly modify limits or revoke access using their Paytm UPI PIN.

The feature is built on NPCI’s UPI Circle framework, which allows for delegated UPI payments without requiring teenagers to open separate bank accounts.
This move comes after several teen-focused fintech startups faced challenges due to RBI restrictions on co-branded PPI-based UPI arrangements.
The feature is available on the latest version of the Paytm app for Android and iOS devices.

Paytm is a leading UPI payments and digital wallet service in India, offering a wide range of financial services including mobile recharges, bill payments, and online transactions.
The company provides services such as UPI payments, credit cards, personal loans, insurance, and investment options like stocks and mutual funds.
Paytm operates through its mobile app and offers services for both individuals and businesses, including payment gateways, POS terminals, and business loans.
The company has a large user base and is known for its fast and secure payment solutions.
Paytm also offers services like ticket booking, loan against gold, and insurance, making it a one-stop financial platform for users.