NEW DELHI: Google Pay, one of India’s dominant digital payment platforms, has started levying a convenience fee on bill payments made through credit and debit cards. This move marks the end of fee-free transactions for millions of users paying for essential services like electricity, water, and gas.
As per Google Pay’s website, the new convenience fee ranges between 0.5% and 1% of the transaction amount, plus applicable Goods and Services Tax (GST). However, transactions made directly through UPI-linked bank accounts remain unaffected.
This change follows Google Pay’s earlier decision to impose a Rs 3 convenience fee on mobile recharges over a year ago. The platform’s shift towards charging fees reflects a growing trend among digital payment services to monetize transactions while maintaining a seamless user experience.
The introduction of convenience fees is not exclusive to Google Pay. PhonePe also levies charges on credit and debit card transactions for bill payments, including water and piped gas bills. Paytm, another major player in India's digital payments space, imposes platform fees ranging from Rs 1 to Rs 40 on UPI recharges and bill payments, as per information available on its website.
Google Pay is currently the second largest UPI player in India with a 37% market share as of January 2025, trailing behind only PhonePe, which holds a 48.4% market share.
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