New Delhi19 minutes ago
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Paytm has launched ‘Paytm Pocket Money’ feature for teenagers, through which they will be able to make secure digital payments without opening their own bank account.
In this new feature, parents will get complete facility to monitor children’s expenses, set monthly limits and do real-time tracking.
Fintech firm One 97 Communications Limited (Paytm) has officially announced this on Monday, May 18.
Parents will have complete control of expenses
According to the company’s statement, parents and trusted family members can provide their children with secure and regulated payment access.
They will be able to set a fixed spending limit for children through their Paytm app. With this, parents will be able to continuously track every transaction of their children and they will always remain in control.
Efforts to digitalize everyday expenses
Teenagers in India are continuously making digital payments every day for essential purposes like shopping, mobile recharge, metro fare, cab booking and school-college canteens.
At present many children are completely dependent on parents or cash for these expenses. ‘Paytm Pocket Money’ will provide children with a secure medium to help families develop responsible financial habits from an early age.
Now there will be no need to ask for OTP
Once this feature is activated, teenagers will be able to make secure UPI payments to online and offline merchants using the Paytm app on their own phones.
For this, now there will be no need to ask for OTP from parents while making payment, borrow their phone or send QR code to parents on WhatsApp.
Monthly cap of Rs 15 thousand decided
Under Paytm Pocket Money, parents can invite children through NPCI’s ‘UPI Circle’. Under this, the monthly limit on the entire UPI network can be set to a maximum of Rs 15,000 and the limit of individual payment at a time can be set to Rs 5,000.
This service is available on both savings and current accounts, but there will be restrictions on international payments and cash withdrawal.
Spend summary will track the entire budget
This new feature is fully integrated with Paytm Spend Summary, which automatically breaks down each payment into different categories.
With this, families can easily keep track of their total expenses, manage pocket money budget better and teach children to use money wisely. There will also be a complete option to view payment history in the app.
In-built safety measures for safety
Paytm has made strict security arrangements in this. Only Rs 500 can be transacted in the first 30 minutes of feature activation and a maximum of Rs 5,000 can be transacted in the first 24 hours.
At any time, if needed, parents can change the spending limit or immediately cancel their child’s access using their Paytm UPI PIN. Apart from this, it is also mandatory to lock the device.
What is UPI circle and in-built safety?
- UPI Circle: This is a special technology launched by National Payments Corporation of India (NPCI). Under this, a primary bank account holder can allow digital payment to any member of his family who does not have his own bank account. In this, complete control remains with the account holder only.
- In-built Safety: There are pre-set safety rules within the app to protect children from online fraud or wrongful transactions. Such as imposing an initial limit on new activations, blocking international payments and giving parents the power to block complete access directly with the UPI PIN.
