Google Pay (GPay), one of India’s largest UPI-based payment platforms, has introduced a convenience fee for bill payments made using debit or credit cards. Reports indicate that the company is charging 0.5-1% of the transaction amount plus GST, depending on factors such as payment mode and transaction value.

Previously, Google Pay had introduced a Rs 3 charge for mobile recharges, and now this new policy extends to bill payments for services like electricity, water, and fuel.

Key Points

Google Pay now imposes a 0.5-1% convenience fee plus GST on bill payments made via debit or credit cards.

Charges apply to electricity, water, fuel, and other utility bills but not UPI-based person-to-person payments.

The fee varies based on transaction amount and payment method and is displayed before completing the payment.

Other platforms like PhonePe, Paytm, and Amazon Pay also charge similar convenience fees.

BHIM UPI remains an alternative that does not levy additional charges on bill payments.

Why Is Google Pay Charging This Fee?

As per reports, UPI payment platforms bear processing costs of about 0.25% per transaction when handling debit and credit card transactions. In a bid to cover these operational expenses, Google Pay has now started passing these costs on to users in the form of a convenience fee.

Although Google has not officially confirmed when these charges were implemented, it has stated that users will always see the latest applicable fee before completing a transaction. Additionally, if a bill payment fails, the convenience fee will be refunded within a specified timeframe.

Notably, peer-to-peer UPI transactions remain free, meaning you won’t be charged for sending money to friends, family, or businesses through UPI.

Google Pay Alternatives That Also Charge Fees

If you’re looking for alternative platforms, it’s worth noting that most other digital payment services also impose similar charges:

PhonePe: India’s largest UPI platform also charges a convenience fee on various transactions, though the exact amount may vary.

Paytm: Users may be charged anywhere between Rs 1 to Rs 40 for bill payments, depending on the transaction value.

Amazon Pay: The platform charges 1-3% (including taxes) on bill payments made via credit/debit cards.

Cred: Reports suggest that Cred applies a 1.5% convenience fee on utility bill payments using credit cards.

BHIM UPI: A Free Alternative

If you wish to avoid convenience fees, BHIM UPI, a government-backed platform, does not currently charge any fee for bill payments. This could be a good alternative for users who frequently pay utility bills online.

Conclusion

As digital payment platforms adjust their pricing strategies, users should check transaction fees before making payments to avoid unexpected charges. With Google Pay, Paytm, PhonePe, and other platforms implementing convenience fees, users may need to explore free alternatives like BHIM UPI to minimize extra costs. However, given the convenience and security of these platforms, many users may still find the fees justifiable for seamless transactions.