New Delhi, May 18, CXO Media: Paytm has introduced a new feature that allows teenagers to make UPI payments without opening a bank account. The move comes as digital payments continue to expand among younger users in India.
The feature, called Pocket Money, is based on the National Payments Corporation of India’s (NPCI) UPI Circle framework, which enables delegated UPI payments through a parent or guardian’s account. Teenagers can make payments using their own smartphones, while parents retain control over limits and spending.
Focus On Teen UPI Payments
The service is aimed at everyday expenses such as school and college canteens, metro travel, cab fares, shopping and mobile recharges. Unlike regular UPI access, teenagers do not need a separate bank account to use the feature.
Parents or trusted family members can set transaction controls, track spending in real time and revoke access when required. Under NPCI guidelines, a single transaction is capped at Rs 5,000, while monthly spending through the feature cannot exceed Rs 15,000.
UPI Circle Framework Expands Use Cases
The launch also highlights growing adoption of NPCI’s UPI Circle framework, which allows supervised digital payments for users without direct banking access. Paytm has added safeguards including lower transaction limits during the first few hours of activation and mandatory device locks to reduce misuse risks.
The feature is available on the latest versions of the Paytm app on Android and iOS, as fintech firms look to expand digital payment access beyond traditional banking users.
