Paytm Launches ”Pocket Money” Feature to Integrate Unbanked Teenagers into India’s Digital Payment Ecosystem
Paytm has launched a new feature dubbed "Pocket Money" targeting unbanked teenagers. This move reflects an accelerating trend toward integrating younger demographics into India's digital payments ecosystem while providing families with comprehensive oversight and spending controls.
The new service enables teenagers to execute digital payments via the Unified Payments Interface (UPI) using their mobile phones without requiring an independent bank account. Transactions are linked to the accounts of parents or family members, allowing for the allocation of specific financial permissions and real-time spending tracking.
In developing this service, Paytm relied on the National Payments Corporation of India (NPCI) framework known as "UPI Circle." This infrastructure allows for the secure and regulated delegation of payments from a primary bank account to secondary users, eliminating the need to share account credentials or passwords.
Under the new system, teenagers can utilize the service for a wide array of daily payments, including purchases at school and university canteens, transport fares, ride-hailing, mobile recharges, and e-commerce. Meanwhile, parents retain the ability to monitor every financial transaction instantly upon execution.
The service also provides advanced control tools for families, including setting monthly allowances, capping spending limits, and managing financial permissions. Furthermore, parents can adjust restrictions or suspend the service at any time through the verification system linked to the primary UPI account.
To enhance financial protection, the company imposed regulatory limits on the service's usage. The maximum cap per single transaction is set at 5,000 Indian Rupees (INR), while total monthly spending is capped at 15,000 INR across the unified payments network. Additionally, cash withdrawals and international payments are strictly prohibited.