Now, Even Children Can Make UPI Payments Without a Bank Account: GPay Introduces ‘Pocket Money’ Feature

Google Pay has introduced a new feature called ‘Pocket Money.’ This feature significantly simplifies the process of sending money. Now, you can assist your friends or family members in making UPI payments without the worry of whether or not they possess their own bank accounts.

Google Pay has launched a new feature titled ‘Pocket Money.’ It makes digital payments even easier and smarter for families. With this feature, parents can directly send money to their children or family members; this does not require a separate bank account. Furthermore, they can also control where and how the money is spent. Let us explain in detail how this feature works and what points you should keep in mind before using it.

What is Google Pay’s ‘Pocket Money’ Feature?

‘Pocket Money’ is, in fact, a part of ‘UPI Circle,’ a system designed to make payments even more convenient and controlled. Through this feature, a ‘Primary User’ (such as a parent) can grant a ‘Secondary User’ (such as a child) permission to make payments directly from the Primary User’s bank account.

Simply put, children can now use GPay to pay for their minor daily needs themselves, though the funds will be debited directly from the parents’ bank account. The limits and controls regarding these transactions remain entirely in the hands of the parents.

How ​​Does This Feature Work?

Using this feature is quite simple. First, the parents must have an active bank account linked to their GPay account. Subsequently, they can add their children, family members, or any trusted individual as a ‘Secondary User.’ It is worth noting that a maximum of five people can be added simultaneously.

The only prerequisite is that the person being added must have the GPay app installed on their phone, and their mobile number must be registered with the service. Once added, the Secondary User can seamlessly make UPI payments; however, the funds are deducted directly from the Primary User’s bank account. In other words, full control over the transactions remains with the parents. Pocket Money Feature: Controls, Limits, and Safety

The most significant highlight of the Pocket Money feature is the complete control and flexibility it offers. Parents can choose between two distinct methods based on their preferences. Under the first option, you can set a monthly spending limit of up to ₹15,000. Within this limit, the child can make payments independently without needing to seek permission for every transaction—much like a prepaid allowance.

The second option requires your explicit approval for every single transaction. The child must first send a request, and the payment is processed only after you have granted your approval. This method is generally considered safer for younger children.

Additionally, KYC verification is mandatory to ensure security. This process requires parents to verify their relationship with the child as well as their government-issued ID. This ensures system transparency and significantly reduces the likelihood of misuse.

How to Set Up Pocket Money on Google Pay?

First, open the Google Pay (GPay) app.
Navigate to the ‘Profile’ section and select the ‘Set up Pocket Money’ option located within the ‘UPI Circle’ section.
Now, select the individual you wish to add to the feature.
Next, scan their ‘UPI Circle’ QR code.
Choose your preferred settings based on your requirements—either set a fixed monthly limit or opt to approve every individual payment.
Then, fill in the details for both yourself and the secondary user (the child), such as your relationship to them and their Aadhaar number.
Finally, enter your UPI PIN to send the invitation.