Google Pay has all started charging a comfort price for positive payments made using credit score and debit cards. This consists of bills for strength and cooking gasoline bills, which were previously unfastened for low-cost transactions. The rate tiers from 0.Five% to 1% plus GST. This flow aligns Google Pay with other UPI systems like PhonePe and Paytm, which additionally impose similar expenses.
Google Pay convenience rate
A review by way of ET determined that a patron became charged approximately Rs 15 as a “convenience charge” whilst paying a strength invoice with a credit score card. The rate, consisting of GST, changed into additionally defined as a “processing fee for debit and credit card transactions.”
Google Pay Convenience Fees Limited to Card Transactions
Google Pay’s internet site specifies that whilst the benefit price applies to card bills, UPI transactions linked directly to bank bills remain free. The specific timeline for the introduction of those expenses is uncertain.
Other Platforms Also Charge Platform Fees
PhonePe applies comfort prices on card transactions for unique bill bills, inclusive of water, piped gas, and electricity. Paytm imposes platform fees ranging from Rs 1 to Rs 40 for recharges and numerous bill payments, which include gasoline, water, and credit card settlements.
UPI Transaction Costs and Government Policies
Despite UPI’s good sized use, fintech firms have struggled to generate tremendous revenue. According to PwC, processing UPI man or woman-to-service provider transactions costs stakeholders about zero.25% of the transaction fee. In FY24, UPI transaction processing prices reached Rs 12,000 crore, with Rs four,000 crore spent on transactions underneath Rs 2,000.
Since 2020, the Indian authorities has waived the merchant bargain fee (MDR) for UPI transactions under Rs 2,000 to sell virtual payments. From 2021, the government began overlaying MDR expenses for smaller transactions. Transactions exceeding Rs 2,000 allow for a 1.1% service provider rate.
UPI Continues to Grow
UPI transaction volumes and values continue to growth. In January 2025, UPI recorded 16.Ninety nine billion transactions worth Rs 23.48 lakh crore. This marks a 1.Fifty five% quantity growth and a 1% transaction price upward thrust from December 2024, reflecting a 39% 12 months-on-year increase.
The Indian government has performed a critical function in ensuring UPI’s increase, masking the fees associated with low-value transactions to encourage adoption,” an enterprise executive said. “However, the absence of MDR for smaller transactions has left UPI platforms with confined avenues to generate revenue at once from customers.
