The era of completely free UPI payments is gradually coming to an end, particularly for bill payments. Google Pay, one of the most widely used UPI payment platforms in India, has confirmed that users will now incur a convenience fee when making payments for electricity, gas, or phone recharges.
However, standard UPI transactions between individuals or at retail outlets will continue to remain free.
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Additional Charges On Bill Payments
With these new changes, bill payments made via debit or credit cards on Google Pay will now include a convenience fee of up to 1 per cent. For example, if your electricity bill amounts to ₹1,500, you can expect to pay approximately 1 per cent of that as an extra charge. This move is not entirely unexpected, as other UPI-based apps like Paytm and PhonePe have already implemented similar fees for transactions made using bank cards.
Meanwhile, Google Pay users in India can also anticipate new features in the coming months. The platform will introduce a feature called UPI Circle, which will enable users to assist elderly family members in making UPI transactions without requiring them to create an account or install the app. By linking the primary UPI account, users will be able to share access with family members while maintaining control over payment settings.
The popularity of UPI payments in India has surged in recent years, solidifying its position as one of the country’s most preferred digital payment methods. Future updates will include the option to auto-replenish UPI Lite balances, along with an increase in the transaction limit from ₹2,000 to ₹5,000 later this year. Additionally, WhatsApp UPI is expected to roll out bill payment features, offering users more choices for digital transactions.