Paytm UPI for Kids: No bank account needed—learn how children can pay at school/college canteens, metro, and more.

UPI For Teens: A new online payment feature for teenagers has been introduced, allowing them to make payments without opening a bank account and making digital spending easier under parental supervision.

Paytm Pocket Money: Digital payment facilities are expanding rapidly across the country. As children grow, their expenses increase, and they require pocket money. However, parents often hesitate to give cash or open bank accounts for them due to a lack of financial literacy. Now, there is a solution to this problem.

The payment app Paytm has launched a new feature called 'Pocket Money.' This enables minors to use UPI without a bank account. A primary UPI user—such as a parent or family member—can allow the child to make payments up to a set limit using their own bank account. This allows children to spend while the primary UPI user retains control.

What is the reason behind launching the 'Pocket Money' feature?

Teenagers often have expenses that require them to call home for an OTP or send a QR code to request funds, keeping them dependent on their parents. With this feature, young people can manage their own spending, while parents retain real-time control over the pocket money.

How does the feature work?

• Parents link their child's account to their own via the 'UPI Circle' feature on the Paytm app.

• The child can then easily make UPI payments using their mobile phone.

• Parents can set a monthly spending limit.

What are the safety guidelines?

This feature was designed with parents' primary concerns in mind, ensuring children cannot overspend.

• The total monthly spending limit is set at ₹15,000, which can be reduced according to your preference. • A single payment is limited to ₹5,000.

• There are certain restrictions on spending during the initial period.

• A phone password is mandatory.

• Cash withdrawals are not possible with this feature.

• International payments cannot be made.

• Parents retain full control and can revoke access whenever they wish.

Fosters an understanding of spending

This facility helps children become self-reliant and learn how to make payments. It also gives them an understanding of how to spend money, teaching them to budget and spend wisely. Digital payments maintain a complete record of every transaction.