Paytm New Feature: Children’s can make UPI payments independently

Paytm New Feature: To use UPI, one typically needs a bank account. Because of this, minors and students usually have to depend on their parents to make online payments. Paytm has now found a solution to this problem by introducing a new feature called Pocket Money.

This feature enables minors and students who do not have a bank account to independently make UPI payments directly from their mobile phones. Paytm has launched a new Pocket Money feature powered by NPCI’s ‘UPI Circle’.

It allows teenagers to make independent UPI payments without needing their own bank account, while giving parents the control to set a monthly spending limit of up to Rs 15,000 directly from their Paytm app.

How Does Pocket Money Work?

Under this feature, parents can link their children’s Paytm app to their own bank account. Once linked, children can independently scan QR codes to pay for school or college canteens, metro travel, cab bookings, mobile recharges, and shopping. There is no need to get an OTP from parents or use the parents’ mobile phone every time a payment is made.

Parental Control and Safety:

Paytm has implemented several security measures to ensure children do not misuse the funds:

Transaction Limits: The maximum limit per single transaction is set at Rs 5,000, with a total monthly spending cap of Rs 15,000.

Initial Restrictions: To enhance security, the spending limit is restricted to just Rs 500 for the first 30 minutes and up to Rs 5,000 for the first 24 hours after activating the feature.

Real-Time Tracking: Parents can track exactly where their children are spending money in real-time on their own phones.

Spend Summary: Through Paytm’s ‘Spend Summary’, expenses are categorized into different sections for easy viewing.

Full Control: Parents can change the spending limit or deactivate the service at any time using their UPI PIN.

Usage Restrictions: This feature cannot be used for international payments or to withdraw cash from ATMs.