What Is Pocket Money in Gpay? Know All About New Google Pay Feature Launched in India
Google Pay’s new Pocket Money feature, powered by UPI Circle, enables parents to grant children digital spending power without a separate bank account. Primary users can set monthly limits up to INR 15,000 or require manual approval for every transaction. The feature requires KYC verification for secondary users and aims to promote financial literacy among minors.
Google Pay (Photo Credits: Wikimedia Commons). 13.04.2026
Google Pay has officially introduced a "Pocket Money" feature in India, designed to streamline digital payments for children and dependents while maintaining strict parental oversight. Built upon the National Payments Corporation of India’s (NPCI) UPI Circle framework, the tool allows primary account holders to share their payment capabilities with secondary users without requiring the latter to have a separate bank account. The move positions Google Pay as a key player in the emerging segment of family-focused financial management, catering to the increasing number of minors using smartphones for daily transactions.
The rollout addresses a long-standing hurdle for parents who were previously hesitant to grant children access to digital payment apps due to security and overspending concerns. By integrating this into the existing UPI ecosystem, Google Pay provides a regulated environment where funds are drawn directly from the parent’s linked bank account, but spent through the child’s individual device.
Google Pay Pocket Money: Delegated Spending and the UPI Circle Framework
The Pocket Money feature functions through a "Primary" and "Secondary" user relationship. A parent (Primary user) can add up to five dependents (Secondary users) by linking their phone numbers or scanning a dedicated UPI Circle QR code. While the secondary user initiates the transaction from their own Google Pay app, the underlying financial responsibility and data remain tied to the primary user’s bank account.
To ensure compliance with local financial regulations and prevent misuse, the setup process requires mandatory verification. In line with Know Your Customer (KYC) norms, parents are required to confirm their relationship with the dependent and submit a government-issued ID for the secondary user. Once the invite is accepted and verified, the delegated spending system becomes active.
GPay Pocket Money Transaction Controls and Monthly Limits
A central component of the Pocket Money feature is the dual-mode control system, which allows parents to choose the level of autonomy granted to their children. In the first mode, parents can set a monthly spending limit of up to INR 15,000. Within this cap, children can make independent payments for routine expenses such as school supplies or snacks without requiring real-time approval for every transaction.
For those seeking tighter monitoring, the second mode operates on a per-transaction approval basis. In this scenario, every time a child attempts to make a payment, a request is sent to the parent’s device; the transaction is only completed once the parent provides manual authorisation. This flexibility allows the feature to scale in complexity as a child grows more responsible with digital currency.
Security and Financial Literacy for Minors
Security remains a priority for the new tool, with the primary user retaining full visibility of all transaction histories initiated by secondary users. By acting as a digital gatekeeper, parents can monitor spending patterns and intervene if necessary. This transparency is intended to serve as a practical educational tool, introducing younger generations to the concepts of budgeting and responsible spending in an increasingly cashless economy.
Industry experts view the introduction of Pocket Money as a strategic response to the rise of specialized "teen-tech" financial apps. By incorporating these features into a mainstream platform like Google Pay, Meta-owned and Google-backed services are aiming to capture user loyalty early, while providing a more integrated experience for families who already utilize UPI for their primary household expenses.
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(The above story first appeared on LatestLY on Apr 09, 2026 11:51 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).
