Google Pay, a popular payment app in India, now charges extra fees for some transactions. This change affects users who pay bills with credit or debit cards. Here’s what you need to know about these updates on Google Pay convenience fees India.
What’s New with Google Pay Convenience Fees In India?
Google Pay starts adding convenience fees to bill payments made with credit or debit cards. The fees range from 0.5% to 1% of the payment amount, plus GST. For example, if you pay a Rs 1,000 bill, you might pay an extra Rs 5 to Rs 10. This shift passes costs to users that Google Pay used to cover. However, payments made straight from a bank account using UPI stay free. This move follows a pattern in the industry. Apps like PhonePe and Paytm also charge fees for similar services.
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The change comes as fintech companies face rising costs. A PwC report says these firms spent Rs 12,000 crore to process UPI payments in FY24. With such expenses, companies now look for ways to earn money. In 2020, the Indian government stopped Merchant Discount Rate (MDR) fees for UPI payments under Rs 2,000 to boost digital payments. The government covers these costs, but apps still find it hard to profit directly from users.
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Why This Matters?
UPI remains a hit in India despite these fees. In January 2025, it handled 16.99 billion transactions worth Rs 23.48 lakh crore. That’s a 39% jump from last year. People love the ease of UPI, but convenience fees might annoy some users. If you pay bills with cards, you’ll notice the extra charge. Sticking to UPI bank payments avoids these costs. Learn more about “Google Pay convenience fees India” as users adapt to these changes!
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Google Pay’s decision highlights a bigger trend. Fintech firms balance free services with the need to make money. As digital payments grow, such fees could become more common. For now, “Google Pay convenience fees India” is a hot topic as users adjust to this shift. Keep an eye on your payment choices to save a few rupees!
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