One 97 Communications has introduced Paytm Pocket Money, a new feature allowing teenagers to make independent UPI payments without needing a personal bank account. This service, integrated with UPI Circle, empowers parents to set monthly spending limits, monitor expenses in real-time via the Paytm Spend Summary, and encourage responsible financial habits. With individual transaction caps of ₹5,000 and a monthly limit of ₹15,000, it provides a secure, supervised digital payment experience for minors.
Empowering Teenagers with Secure Digital Payments
Paytm has officially rolled out Paytm Pocket Money, a digital solution designed to help teenagers navigate everyday expenses such as school canteen payments, metro rides, and mobile recharges. By bypassing the need for a traditional bank account, the service allows young users to conduct transactions independently while maintaining a layer of parental supervision. This initiative is a strategic effort to move cash-dependent spending habits into a secure, trackable digital format.
Controlled Spending and Parental Oversight
Safety and control are central to the new offering. Parents and trusted family members can invite teenagers via the UPI Circle platform to begin using the service. Key security features include:
- Transaction Limits: Individual payments are capped at ₹5,000, with an overall monthly spending limit of ₹15,000.
- Safety Buffers: New accounts are restricted to ₹500 for the first 30 minutes, with a ₹5,000 limit for the first 24 hours.
- Real-time Visibility: The Paytm Spend Summary feature automatically categorizes all transactions, allowing families to monitor spending patterns and adjust limits instantly.
- Security Requirements: The service mandates a device lock and uses the Paytm UPI PIN for all modifications, with international payments and cash withdrawals explicitly blocked.
Getting Started
To enable the feature, users simply need to update their Paytm app to the latest version. After selecting ‘Pocket Money’ under the ‘To Mobile / Contact’ section, guardians can invite their teenager, verify necessary documents, and set custom spending limits to complete the setup process. This streamlined approach ensures that teenagers gain financial independence in a controlled and supervised environment.
Source: BSE
