In a recent update, Google Pay, one of India’s foremost digital payment platforms, has introduced an unexpected convenience fee for users engaging in prepaid mobile recharges. This change mirrors similar tactics by competitors PhonePe and PayTM.

Google Pay Changes: Users report a new convenience fee on mobile recharges via Google Pay, echoing earlier moves by competitors.

Fee Structure: Google Pay’s convenience charges are incremental based on recharge amounts: ranging from zero for smaller recharges to Rs 3 for amounts exceeding Rs 301.

Up to Rs 100: No additional fee

Rs 101 – 200: Rs 1 convenience charge

Rs 201 – 300: Rs 2 convenience charge

Rs 301 and above Rs 3 convenience charge

Fee Introduction: Despite previously offering mobile recharges sans additional charges, Google Pay has quietly introduced fees, potentially generating revenue from the digital payments sector.

User Experiences: An individual named Ankush highlighted a Rs 3 charge for a Rs 749 Jio recharge, paying via UPI mode, indicating that this wasn’t a credit card-related surcharge.

Terms of Service Update: Recent modifications in Google’s Terms of Service suggest a provision for such convenience fees, though the direct connection between these updates and the new charges remains unclear.

Impact on Users: The addition of convenience fees could shift user behavior, prompting them to consider alternative recharge methods directly through telecom operators’ platforms to avoid additional charges.

Google Pay’s implementation of convenience fees for mobile recharges in India echoes moves made earlier by competitors like PhonePe and PayTM. The fee structure varies based on the recharge amount, with charges ranging from zero for smaller amounts to Rs 3 for recharges exceeding Rs 301.

Ankush’s experience (Shared in DesiDime) highlighted a Rs 3 charge for a Rs 749 Jio recharge through UPI, indicating that the fee isn’t associated with credit card payments. Google quietly updated its Terms of Service, suggesting a provision for such fees, although the direct link between these updates and the new charges remains unclear.

@desidime

This move might alter user behavior, potentially steering them towards recharging directly through telecom operators’ platforms to avoid additional fees. As Google Pay is a key player in India’s digital payment sector, this change may pave the way for other platforms to explore similar revenue-generating avenues.