GPay Adds Extra Fees For UPI Payments, But Only For A Certain Type: Details Here
GPay's newly introduced fees range from 0.5 per cent to 1 per cent of the transaction amount
Google Pay users who have been enjoying free transactions on the platform will now have to pay a convenience fee for certain bill payments. The digital payments giant has implemented charges for transactions made using credit and debit cards, marking a shift from its previous policy of absorbing these costs.
The newly introduced fees range from 0.5 per cent to 1 per cent of the transaction amount, along with applicable GST. While UPI payments linked directly to bank accounts remain free, users making payments for utilities like electricity and cooking gas through credit or debit cards will now be charged.
This move follows a similar step by Google Pay over a year ago when it introduced a Rs 3 fee for mobile recharges above a certain amount.
As reported by the Economic Times, A customer recently noticed a deduction of around Rs 15 as a "convenience fee" while paying an electricity bill via credit card, which was also labelled as a "processing fee for debit and credit card transactions."
"Google Pay’s decision to introduce platform fees for bill payments reflects a larger trend of fintech companies looking to offset the costs of payment processing," a person familiar with the matter explained to ET. "As UPI usage continues to surge, platforms are balancing growth with sustainable revenue streams."
Biggest UPI Volume
Google Pay, which processes nearly 37 per cent of UPI transactions, is second only to Walmart-backed PhonePe. In January 2025, the platform handled UPI transactions worth Rs 8.26 lakh crore. The introduction of platform fees aligns with industry practices, as many fintech companies are passing on transaction costs to customers instead of bearing them internally.
According to Google Pay’s official website, these charges help cover expenses associated with processing card payments. However, the exact timeline of when this cost shift began remains unclear.
Rival platforms have adopted similar measures. PhonePe imposes a convenience fee for certain bill payments made using credit or debit cards, while Paytm charges a platform fee ranging from Rs 1 to Rs 40 for mobile recharges and utility bill payments via UPI.
Despite UPI’s massive popularity, generating direct revenue from these transactions remains a challenge for fintech firms.
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