Paytm brings UPI to teens with Pocket Money feature
What's the story
Paytm has launched a new feature called 'Pocket Money,' allowing teenagers to make UPI payments even if they don't have their own bank account. The feature is built on the National Payments Corporation of India's (NPCI) UPI Circle framework. It enables parents or family members to provide controlled spending access to their kids via the Paytm app.
Feature details
How it works for parents and teens
The 'Pocket Money' feature is designed to give teens a sense of financial independence while allowing parents or trusted family members to control spending limits and monitor transactions. With this new offering, teens can make payments at online and offline merchants through the Paytm app on their smartphones. Once set up, they won't need OTP approvals or cash transfers from parents for every payment.
Setup process
Setting up 'Pocket money'
To enable the 'Pocket Money' feature, parents or family members can do so directly through the Paytm app. After setup, teens can make UPI payments using the balance access linked through UPI Circle. Individual transactions are capped at ₹5,000 while the overall monthly limit across the UPI network is restricted to ₹15,000. The feature works with both savings and current accounts but doesn't allow international transactions or cash withdrawals.
Safety measures
Safety features
Paytm has added several safety layers to the 'Pocket Money' feature. Payments are limited to ₹500 during the first 30 minutes after activation and capped at ₹5,000 during the first 24 hours. A device lock is mandatory for usage. Parents can modify spending limits or revoke access anytime using their Paytm UPI PIN. Transaction history can also be monitored through the app.