New Delhi: Paytm has introduced a new feature for the teenagers, ‘Pocket Money’, which gives them the option to make UPI payments without opening any bank account. The feature is aimed at helping young users pay their daily expenses like metro rides, food orders, shopping, or mobile recharges without any restrictions, while still allowing parents total control over their spending.
The feature will help minimise teens’ reliance on cash or a parent’s repeated approval for payments, the company said. With pocket money, teens can use Paytm UPI independently on their smartphones, while parents or guardians can monitor transactions, set spending limits, and revoke access whenever required through the Paytm app.
Teenagers can make UPI payments with parental approval
Paytm says that the feature to let teens log into their accounts can only be enabled by their parents or relevant family members following their approval. Once activated, a teen will not have to receive an OTP from a parent’s phone for each payment.
The company has rolled out some safeguards in the rollout. Each transaction will be limited to Rs 5,000, and the monthly spending limit for all UPI network transactions is capped at Rs 15,000. You will not be able to pay with an international payment or get cash out under the feature.
Paytm adds spending controls and security limits
Paytm said pocket money is made easy with its Spend Summary tool, which automatically classifies expenses to improve the efforts of tracking spending patterns for families. Parents can also adjust the limits or even block the access at a single touch of their Paytm UPI PIN.
The company has placed temporary limits for the first time in the activation period for extra security. There is a restriction of Rs 500 in transactions for the first 30 minutes since activation and Rs 5,000 for the first 24 hours after activation. For the feature to be used, a device lock is required.
According to the Paytm spokesperson, this feature is designed to teach responsible digital payment habits to children and allow parents to keep an eye on their activities.
How to enable Paytm Pocket Money
This feature can be enabled by the users after updating the Paytm app. The ‘pocket money’ is located within the payments area of the app.
Parents or guardians must select the contact they want to enable the feature for, complete verification, set a monthly spending limit, and authenticate the request using their Paytm UPI PIN. The teenager will then take the invitation before pocket money will be active.