Google Pay Introduces ‘Pocket Money’ Feature: A Smarter Way to Share Payments

135
11 Apr 2026
min read

News Synopsis

Google Pay has rolled out a new feature called Pocket Money under its UPI Circle framework, aimed at simplifying digital transactions for dependents and individuals without bank accounts. The feature enables controlled access to a primary user’s account, making digital payments more inclusive and flexible.

What Is Google Pay Pocket Money?

The Pocket Money feature is part of the broader UPI Circle initiative introduced on Google Pay. It allows a primary user to share limited access to their bank account with secondary users such as children, elderly family members, or even employees.

In this setup:

  • The primary user owns and controls the bank account
  • The secondary user can initiate payments using that account

Unlike traditional methods, there is no need to transfer funds separately. Instead, payments are made directly from the primary account, with predefined controls and limits ensuring security.

Google Pay allows up to five secondary users to be linked under one account, making it a practical solution for managing shared or dependent expenses.

How the Pocket Money System Works

The feature operates through a structured delegation system that determines how payments are authorised and processed.

1. Full Delegation Mode

In this mode, the primary user sets a monthly spending limit of up to ₹15,000. Once configured, the secondary user can make payments independently without needing approval for each transaction.

This mode is ideal for:

  • Children receiving monthly allowances
  • Regular household expenses
  • Trusted users with predictable spending patterns

2. Partial Delegation Mode

Under partial delegation, every transaction requires approval from the primary user.

Here’s how it works:

  • The secondary user initiates a payment request
  • The primary user receives a notification
  • The transaction is completed only after approval

This mode provides greater control and is suitable for:

  • Monitoring occasional expenses
  • Managing spending for new users
  • Ensuring oversight on every transaction

Step-by-Step Guide to Set Up Pocket Money

Setting up Pocket Money on Google Pay is straightforward and user-friendly.

Step 1: Access UPI Circle

Open the app and navigate to the profile section. From there, select the UPI Circle option.

Step 2: Add a Secondary User

Choose the contact you want to add. The selected individual must:

  • Have Google Pay installed
  • Be registered with their mobile number

Step 3: Scan QR Code

The primary user needs to scan the secondary user’s UPI Circle QR code to initiate the linking process.

Step 4: Select Delegation Mode

Choose between:

  • Full delegation (independent spending within limits)
  • Partial delegation (approval-based transactions)

Step 5: Set Limits and Complete KYC

For full delegation:

  • Set a monthly spending cap
  • Provide details such as relationship and government ID for compliance

Step 6: Confirm Setup

An invite is sent to the secondary user. The primary user must enter their UPI PIN to finalise the setup.

Using Pocket Money for Payments

Once the setup is complete, the secondary user can begin making transactions seamlessly.

Offline Payments

  • Scan QR codes at shops
  • Use mobile numbers for peer-to-peer payments

Online Payments

  • Select UPI at checkout
  • Choose Google Pay as the payment method

If full delegation is enabled, payments are processed instantly within the set limit. In approval mode, the primary user must authorise each request within a specific time window.

All transactions are recorded and visible to both users, ensuring transparency.

Supported Transactions and Limitations

Currently, Pocket Money supports:

  • QR code payments
  • Phone number transfers
  • UPI ID transactions
  • Online purchases

However, certain services are not yet included:

  • Bill payments
  • Mobile recharges

Additionally, there is a 24-hour cooldown period after adding a secondary user. During this time, transaction limits are lower before normal limits apply.

Key Benefits of Pocket Money Feature

1. Financial Inclusion

The feature enables individuals without bank accounts to participate in digital payments, expanding access to financial tools.

2. Controlled Spending

Primary users can set limits and approval rules, ensuring disciplined spending.

3. Convenience

No need to transfer money repeatedly—payments are handled directly from the linked account.

4. Transparency

Both users can track transactions in real time, reducing confusion and improving accountability.

Use Cases in Everyday Life

The Pocket Money feature can be applied in multiple real-world scenarios:

  • Parents and Children: Manage allowances and monitor spending
  • Elderly Family Members: Simplify payments without managing bank apps
  • Household Staff: Handle daily expenses efficiently
  • Small Businesses: Enable controlled spending for employees

A Step Toward Smarter Digital Payments

With the introduction of Pocket Money, Google Pay is moving toward a more inclusive and flexible payment ecosystem.

By combining shared access with built-in controls, the feature addresses a key gap in digital payments—allowing multiple users to operate from a single account securely.

Conclusion

The Pocket Money feature under UPI Circle represents a significant evolution in digital payment systems. It simplifies financial management for families and small groups while maintaining control and security.

As digital adoption continues to grow, innovations like this are likely to play a crucial role in bringing more users into the formal financial ecosystem.

Podcast

TWN Special