Google Pay Implements Convenience Fee for Utility Payments: What You Need to Know

Google Pay has introduced convenience charges against payments to utilities made through debit and credit cards. Such convenience fees are in the range of 0.5 - 1% plus GST: for payments like electricity, water, and cooking gas. This follows a similar charge for mobile recharges that was announced last year. Transactions done directly through the bank account using UPI continue to be fee-free. The move also fits in with overall industry trends, as competitors PhonePe and Paytm already charge like that. Of the total UPI transactions, Google Pay accounted for 37%, processing a total of Rs 8.26 lakh crore in January alone. The fee is intended to make good on the payment processing costs that fintechs have to play within searching for sustainable revenue models.

 

Sources: The Economic Times