What Is Pocket Money in Google Pay? How This GPay Feature Works for Kids & Parents

New Delhi: Google Pay has introduced a “Pocket Money” feature that changes how families manage digital payments. Built on its UPI Circle system, the tool lets parents send money directly to children or dependents without requiring a separate bank account, while keeping full control over how the funds are used.  

With more young users gaining access to smartphones and online payments, the update positions GPay as both a secure payment app and a simple financial learning tool. Here’s how it works, what it means for families, and answers to the key questions you’ll have before trying it out.  

What is Pocket Money on GPay?

Pocket Money is part of UPI Circle, a system that lets one user (called the Primary user) allow another person (Secondary user) to make payments using their bank account. In practical terms, this means parents can let their kids pay for small expenses like snacks, school supplies, or online subscriptions directly through GPay, while the money still comes from the parent’s account.

The idea is to grant children or dependents limited spending power, and parents having complete visibility and control.

How the feature works

To use this feature, the parent must already have an active bank account linked to GPay. They can then add up to five people - children, family members, or even trusted helpers - as Secondary users. The only requirement is that the person being added must have the GPay app installed and registered with their phone number.

Once added, the Secondary user can start making UPI payments. However, the actual payment is processed through the Primary user’s bank account. This creates a controlled environment where the parent acts as the financial gatekeeper.

Control, limits and safety

One of the biggest highlights of the Pocket Money feature is flexibility. Parents can choose between two modes.

In the first option, they can set a monthly spending limit of up to Rs 15,000. Within this limit, the child can make payments independently, without needing approval each time. This works like a prepaid allowance.

In the second option, every transaction requires approval. The child sends a payment request, and the parent must approve it before the money is released. This is useful for younger kids or for tighter monitoring.

To comply with banking regulations, the system also requires verification of the Secondary user. Parents must confirm their relationship and submit a government ID, in line with KYC norms. This ensures transparency and reduces misuse.

Setting it up on GPay

Setting up Pocket Money is designed to be straightforward. Users need to head to their profile section in GPay, select UPI Circle, and begin the setup process. After choosing a contact, scanning their UPI Circle QR code, and selecting approval settings, the parent can assign limits and send an invite.

Once the Secondary user accepts and verification is completed, the system becomes active.

With the rise of digital payments in India, many parents have been hesitant to give children unrestricted access to money apps. GPay’s Pocket Money feature bridges that gap by combining convenience with control.

It also introduces children to responsible spending habits early, making it more than just a payment tool, it becomes a step toward financial literacy.

Read More: Paytm Adds Face ID, Fingerprint for UPI Payments and Cardless ATM Withdrawals: What It Means for Users