Google Pay Users: Important Update! Extra Charges Now Apply to Bill Payments – Know the Details

Google Pay Introduces Processing Fees for Bill Payments

Just like PhonePe and Paytm, Google Pay has now started charging processing fees on bill payments and recharges. If you use a debit or credit card to pay for electricity, water, or gas bills through Google Pay, you will now incur an additional 0.5% to 1% charge along with GST.

However, if you make payments directly via UPI from your bank account, no extra charges will apply.

Which Payments Will Be Affected?

This convenience fee will apply to transactions such as:

• Electricity bill payments
• Water bill payments
• Gas bill payments

Previously, small transactions were exempt from such charges. However, Google Pay had introduced a ₹3 charge on mobile recharges last year, and now the same rule has been extended to utility bill payments.

PhonePe and Paytm Already Charge Similar Fees

Google Pay is following the path of PhonePe and Paytm, both of which already charge processing fees for bill payments, recharges, and other services.

For instance, if a user pays an electricity bill using a credit card on Google Pay, they may be charged an additional ₹15 as a convenience fee, which includes GST. A similar fee structure applies to debit card transactions as well.

UPI Payments Remain Free

There will be no charges for payments made directly via UPI bank transfers. Google Pay holds a 37% share in UPI transactions, making it the second-largest platform after PhonePe. As of January 2025, Google Pay processed UPI transactions worth ₹8.26 lakh crore.

Previously, Google Pay absorbed the processing costs, but now the company has shifted this burden to users. According to Google Pay’s official website, card payments will now attract a convenience fee, while UPI transactions will remain free.