Paytm rolls out Pocket Money, opening UPI payments to teens with parent-controlled spending caps

Paytm's new Pocket Money product lets minors transact on UPI without a bank account via NPCI's UPI Circle, with parents setting ₹5,000 per-transaction and ₹15,000 monthly limits. Targets canteens, metro, cabs and retail — extending UPI rails into a new under-18 cohort.

— Source publishedMon, 18 May, 2026, 14:50 IST·First seen Mon, 18 May, 2026, 14:59 IST·Source Mint · Money

What happened

Paytm launched Pocket Money, enabling teens without bank accounts to make UPI payments via NPCI's UPI Circle feature. Parents set spending limits

Key facts

  • ₹5,000 per payment
  • ₹15,000 monthly limit
  • ₹500 first 30 minutes
  • ₹5,000 first 24 hours

Why this matters

UPI Circle just opened a teen-wallet category; expect fast-follows from PhonePe and GPay, plus partnership pulls from edtechs, school ERPs and youth-focused neobanks looking to ride Paytm's rails or build alternatives.