Google Pay: Google Pay is also a shock to the customers, now they will have to pay extra charges on bill payment, know how to avoid it.

Google Pay has now started charging convenience fees on bill payments. If you pay the electricity bill and gas bill with Google Pay, then now you will have to pay an additional charge of 0.5% to 1%, which will also include GST. According to the report of Economic Times, Google Pay has started charging a Convenience Fee of 0.5% to 1% on bill payments.

However, the company has not yet officially confirmed it. However, if this happens, then you will now have to pay extra money for paying electricity or gas bills with Google Pay.

On which transactions will the charge be levied?

If you pay an electricity or gas bill with a credit card payment or debit card payment, then you will have to pay a charge of 0.5% to 1%, which will also include GST.

If you make payment directly from a bank account through UPI (UPI payment), then no charge will be levied. That is, UPI bank transactions will still be free.

This fee will also be applicable on bill payments made through a RuPay card.

Do PhonePe and Paytm also charge?

Yes, PhonePe and Paytm are already charging processing fees on bill payments, mobile recharge, and other services. Now Google Pay, the second largest platform of UPI payment in India, has also adopted the same model. However, no charge will be levied on direct bank transfers from UPI.

How much will be the processing charge? How to check the Convenience Fee?

According to the information, this fee can vary according to each transaction. Before making the payment, you will be shown the information about the charge in the app. When you make a bill payment on Google Pay, the information about the charge will be shown before making the payment. Also, this fee will be visible in your Transaction History.

If your bill payment or transaction fails, then your bill amount as well as the convenience fee will be refunded.

Why was this change made for Google Pay?

Fintech companies do not get direct revenue from UPI transactions, due to which they are incurring huge losses. Given the cost of UPI payments, companies like Google Pay, PhonePe and Paytm are now looking for new ways to earn money. According to a PwC report, in FY24, fintech companies had to bear an expenditure of about Rs 12,000 crore in processing UPI transactions. Therefore, companies are now adopting new ways to earn money directly from their service. This is the reason why these companies have now started charging users.

What option is left for customers?

If you want to avoid convenience fees or extra charges, use UPI, as bank-to-bank UPI transactions are still free.

39% growth in UPI transactions in January 2025

In 2020, the government waived off MDR (Merchant Discount Rate) on UPI transactions less than ₹2000, which promoted digital payments. In January 2025, there were 16.99 billion UPI transactions, with a total value of ₹23.48 lakh crore. This is 39% more than last year.

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