Pocket Money goes digital: Which payment apps are best for teenagers in India?

India’s fintech ecosystem is rapidly expanding beyond adults, with payment platforms increasingly targeting teenagers and minors who are growing up in a digital-first economy. The latest entrant is Paytm’s “Pocket Money” feature, which allows teenagers to make UPI payments without opening their own bank account.

The feature, launched using NPCI’s UPI Circle framework, reflects a broader trend where fintech companies are building supervised payment solutions for younger users through prepaid wallets, cards, parental controls, and financial literacy tools.

What is Paytm Pocket Money?

Paytm says its new Pocket Money feature allows parents to authorise and supervise digital payments for teenagers while maintaining full oversight of spending activity.

Under the system, teenagers can use UPI for daily expenses such as food orders, transport, school purchases, shopping, and entertainment without having an independent bank account.

Parents can:

Set spending limits
Track transactions in real time
Revoke access when needed
Control payment permissions

The model is built on NPCI’s UPI Circle framework, which allows primary account holders to authorise secondary users for limited UPI transactions.

The launch is significant because it expands UPI access to younger consumers who are not yet eligible for full banking services.

Why fintech firms are targeting teenagers

India’s digital payments market has seen explosive growth over the past few years, with UPI becoming the country’s dominant payment infrastructure.

Teenagers today are increasingly using smartphones, online commerce platforms, food delivery apps, gaming subscriptions, and digital services at a younger age. Fintech companies see this as an opportunity to build long-term customer relationships early.

Industry experts say teen-focused fintech products are becoming a strategic customer acquisition tool. By introducing users to digital payments, budgeting, and savings early, companies hope to retain them as future users of broader financial services including banking, investments, insurance, and credit products.

Apps offering digital payments for teenagers

Paytm Pocket Money

Paytm’s newly launched feature focuses on supervised UPI access for teenagers without separate bank accounts. The company positions it as a safer and more controlled alternative for students and younger users entering digital payments.

FamApp

FamApp, earlier known as FamPay, remains one of India’s most recognised teen-focused fintech platforms. The app offers prepaid cards, peer-to-peer transfers, rewards, and budgeting tools under parental supervision.

The platform became popular among Gen Z users for enabling digital payments before users become eligible for traditional banking products.

Junio

Junio markets itself as a digital pocket money platform for children and teens. Parents can transfer funds, monitor spending patterns, and set usage controls while children use prepaid cards and app-based payment features.

Walrus

Walrus targets students and younger consumers with prepaid payment cards, cashback rewards, and expense management tools. The platform focuses heavily on digital-first spending behaviour among teenagers.

 

Akudo

Akudo combines prepaid payment tools with financial literacy-focused features. The app includes expense tracking, budgeting lessons, and gamified financial education modules aimed at helping teenagers understand money management.

Global apps entering the teen fintech space

Several international fintech firms are also building products specifically for children and teenagers.

GoHenry

GoHenry, popular in the UK and US markets, offers debit cards, spending controls, chore-based allowances, and savings tools for children.

Greenlight

Greenlight combines supervised debit cards with savings and beginner investment tools designed to introduce financial literacy at an early stage.

Step

US-based Step offers teenagers supervised spending accounts and payment cards, helping younger users access digital payments before becoming eligible for standard banking services.

Financial literacy becomes the bigger focus

Beyond payments, many of these apps are increasingly positioning themselves as financial education platforms.

Features such as budgeting trackers, savings goals, spending insights, allowance automation, and rewards systems are becoming central to teen fintech products.

As India moves toward a digital payments-first economy, supervised payment apps for teenagers are likely to become more mainstream, reshaping how younger users learn spending habits and interact with financial systems long before adulthood.