Digital payments platform Google Pay has launched a new service named ‘Pocket Money’ that allows people, particularly kids, to initiate UPI transactions even when they do not have an account in the bank.
As per a news report published in Amar Ujala, the feature is built on the ‘UPI Circle’ framework and gives primary users, who are usually the parents, complete authority over their spendings while enabling payment services for secondary users.
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How the ‘Pocket Money’ system works
The feature operates through a two-user structure:
Primary user: The person whose bank account is linked to Google Pay
Secondary user: A family member, child, or trusted individual who can make payments
Secondary users can initiate transactions through the app, while the payment amount is deducted directly from the primary user’s linked bank account.
The key aspect is that the secondary user does not need a separate bank account, making it easier for minors or dependents to participate in digital payments.
Spending limits and control options
Google Pay offers flexible controls to ensure security and oversight:
Monthly limit mode: Primary users can set a spending cap of up to ₹15,000, allowing independent transactions within that limit
Approval mode: Every payment request must be approved by the primary user before it is processed
Users can add up to five secondary members to their UPI Circle, subject to verification requirements.
Setup and verification requirements
For this function to work, the secondary user requires a smartphone that is installed with the Google Pay app and registered using their phone number. The primary user needs to:
Add the details of the secondary user
Scan the QR code for the UPI Circle or use the UPI ID
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Enter the relationship details along with government ID details if any
Once the request is accepted, then the secondary user can start making payments using the controls chosen.
The launch of Pocket Money indicates that there is an effort by companies to make digital payments using UPI available to more users. Though the function makes payments easier for families, it also focuses on ensuring supervision and safety through controls.
