There is no charge for UPI payments, so how do companies like Gpay, PhonePe earn crores

How Google Pay Phonepe Earn: Companies like Google Pay and PhonePe do not charge any fee, yet they earn crores of rupees every year. Let's know what they earn through.

Today, people make payments from Rs 1 to Rs 1 lakh through Google Pay or PhonePe. These payments are absolutely free, neither any charge nor any commission. Still these companies have earned more than 5065 crores last year. Now the question is that when these companies neither sell any product nor charge any transaction fee, then where do they earn from.

You must have also wondered how these digital apps, which are used for free, earn so much money without selling any product.

These digital giant apps earn from a unique business model, which is based on trust, scale and innovation. Most of the income of these companies comes from small grocery stores.

These digital apps earn from the voice-operating speaker service used at grocery stores. Whenever you make payment after purchasing goods from the shop, a voice is heard saying that Rs 100 has been received on PhonePe.

The company rents this speaker to shopkeepers for Rs 100 per month. These speakers have been made available to more than 30 lakh shops, earning Rs 30 crore every month and Rs 360 crore annually.

Apart from this, these companies are also earning through scratch cards. These cards lure customers with cashback or coupons. This is not just a way to attract customers.

This is also a way of advertising for brands. These brands pay for cards to increase their visibility and reach to the people. Google Pay and PhonePe get double benefit through this.

The next interesting aspect is their SaaS and lending services. These companies have not only allowed UPI to remain a payment tool but have also made it a complete solution for small businesses.