Google Pay’s Convenience Fees on Bill Payments
According to a report by the Economic Times, the Google-owned UPI platform will cost customers between 0.5 to 1 % of the transaction worth as a comfort charge, together with relevant GST on utility invoice funds. It is reportedly labelled as a “processing charge” for debit and bank card transactions.
With this transfer, Google Pay has adopted within the footsteps of different UPI platforms resembling Paytm and PhonePe. While the previous levies a cost between Rs. 1 to Rs. 40, the latter prices the identical as Google Pay on invoice funds by way of debit and bank cards. Citing a person acquainted with the matter, the report claims that the addition of the comfort charge signifies a shift in direction of making it a typical business observe.
As per a PWC evaluation, Google Pay and different UPI platforms incur a charge of 0.25 % of the whole transaction worth whereas processing peer-to-merchant transactions. While Google Pay beforehand lined this charge on the person’s behalf, it is going to now cost them between 0.5 to 1 %, relying on the transaction sort and worth. However, the corporate emphasises that this solely applies to debit and bank card funds and funds made by way of UPI-linked financial institution accounts stay unaffected.
Notably, 16.99 billion UPI funds in India have been reportedly recorded in January 2025, amounting to a complete of Rs. 23.48 lakh crore. This is claimed to be a rise of 1 % by way of the transaction worth in comparison with December 2024.
