Google Pay is now collecting convenience fees for bill payments made through credit and debit cards, a report said. So far, the unified payment interface (UPI) platform is charging users Rs. 3 As a service fee for mobile recharge. However, in addition to the Goods and Services Tax (GST), it will also charge payments for services such as electricity, pipeline gas and water.
Convenience Fees for Payment on Google Pay
According to a report from the Economic Times, Google-owned UPI platform will charge users 0.5% to 1% of the transaction value and pay GST for convenience fees and applicable utility bills. It is reportedly marked as a “processing fee” for debit and credit card transactions.
With this move, Google Pay follows the footsteps of other UPI platforms such as Paytm and Phonepe. The former charges between the Rs. 1 to Rs. 40, the latter charges the same charges as Google pays bill payments via debit and credit cards. The report cites an individual familiar with the matter, saying that the increase in convenience fees indicates a shift toward making it a common industry practice.
According to PWC analysis, Google Pay and other UPI platforms charge 0.25% of the total transaction value while processing peer transactions. While Google Payments previously paid the fee on behalf of users, it will now charge a 0.5% to 1% fee depending on the type of transaction and value. However, the company stressed that this only applies to debit and credit card payments and payments made through UPI-linked bank accounts, which remains unaffected.
It is worth noting that India’s 16.9 billion UPI payments were reportedly recorded in January 2025, totaling to Rs. 23.48 billion tens of millions. This is said to have increased the value of the transaction by 1% compared to December 2024.
