Google Pay has started charging a convenience fee on utility payments made using credit and debit cards. This fee ranges from 0.5% to 1% of the transaction value, including GST. Previously, these transactions were free. The move aligns Google Pay with other UPI platforms like PhonePe and Paytm, which have already implemented similar fees.
The convenience fee applies to payments for services such as electricity, water, and cooking gas. Users who pay their utility bills using credit cards have reported fees of around ₹15 per transaction. The fee is labeled as a “processing fee” for debit and credit card transactions. However, payments made through UPI-linked bank accounts remain free of charge.
This change reflects a broader trend among digital payment platforms to monetize transactions and cover payment processing costs. As UPI usage continues to rise, fintech companies are seeking sustainable revenue streams. Google Pay’s new fee structure aims to balance growth with financial sustainability.
Users are advised to review their payment methods and consider alternatives to avoid additional charges. The introduction of convenience fees has sparked discussions among users, with some expressing concerns about the impact on the popularity of electronic payments.
