A large part of the country’s population uses UPI for daily transactions. Now, UPI is not only used for payments at shops but also for many important tasks. Google Pay, the country’s second-largest UPI payment company, is charging convenience fees for various services. However, most Google Pay users are unaware of these charges. According to a report by The Economic Times, Google Pay has started charging users for services that were previously free.
You Will Have to Pay Extra for These Services
According to the report, Google Pay has started charging convenience fees for payments like electricity and gas bills. However, this fee is only applicable when users make payments using a credit card. Users who pay their electricity and gas bills with credit or debit cards will now be charged an additional fee.
UPI payment companies have already been charging fees for mobile recharges. Apart from Google Pay, PhonePe and Paytm also charge customers. This fee can range from 0.5% to 1% of the transaction value, and GST is also applicable to these services.
Fee Applies Only for Card Payments
Google Pay allows users to pay various types of bills. However, the option to pay by card is not available for all payments on the platform. If users pay their bills using a credit or debit card, they will have to pay the fee. However, payments made directly from a UPI-linked bank account will not incur any charges. PhonePe leads the UPI payment market in India with a 47.8% market share, while Google Pay holds the second position with a 37% share.
How to Avoid Extra Charges on UPI Transactions?
- Use UPI-Linked Bank Accounts – Pay directly via UPI to avoid fees on credit/debit cards.
- Check Payment Methods – Verify if a convenience fee applies before proceeding.
- Choose Fee-Free Apps – Compare UPI platforms to find ones without extra charges.
- Opt for Auto-Pay – Use bank auto-debit for bill payments to avoid fees.
- Avoid Credit Card Payments – Stick to UPI or debit cards to save on extra costs.