Google Pay Convenience Fees Update: Google Pay is one of the most used UPI apps in India. Right now, a news update is coming that may disappoint Google Pay users. It is believed that Google Pay may soon introduce a convenience fee on UPI payments, making transactions slightly more expensive for some users.

Other major UPI payment apps in India, like PhonePe and Paytm, already charge processing fees on mobile recharges and other payments. Now, Google Pay is also expected to follow this trend.

Let’s find out why Google Pay has decided to introduce a convenience fee and which users will be most affected by this decision.

Why Was This Decision Taken?

Fintech companies do not directly earn from UPI payments. As a result, many fintech companies have been incurring losses while also spending on UPI payments. To address this loss, UPI apps like PhonePe, Paytm, and Google Pay have decided to impose a convenience fee on select UPI payments. Let’s see which UPI payments will have a convenience fee.

Who Will Be Affected?

Google Pay may impose a convenience fee on utility payments like electricity and gas bills. According to an Economic Times report, if you pay your electricity or gas bill through Google Pay using a credit or debit card, you may have to pay a convenience fee of 0.5% to 1%. Along with the convenience fee, GST will also be applied to your payment.

How to Add a Bank Account to Google Pay (GPay)

  • Open Google Pay and log in with your mobile number.
  • Tap your profile (top right) and select “Bank Accounts” or “Payment Methods”.
  • Click “Add Bank Account” and choose your bank.
  • Verify your account via SMS and set your UPI PIN (if not already set).
  • Once verified, your bank account is linked and ready to use.

Tip: Ensure your mobile number is active for verification.