Google Pay is stopping free transactions; decides to charge a convenience fee for bill payments.

Google Pay will start charging for certain services. The company has decided to levy a convenience fee on bill payments. Users will have to pay a fee for utility bill payments made using debit and credit cards. This includes transactions for electricity bills, water bills, and cooking gas bills, with charges ranging from 0.50% to 1% of the transaction amount. Additionally, GST will also be applicable. However, if the transaction is made directly from a bank account linked via UPI, no fees will be charged.

Another major UPI platform in the country, PhonePe, has already been charging fees for such transactions. On Paytm, the charges range from ₹1 to ₹40. Google Pay has also been charging a ₹3 convenience fee for mobile recharges. The convenience fee is being implemented to cover the cost of processing credit and debit card payments.

With a 37% market share, Google Pay holds the second position in the country. In January, transactions worth ₹8.26 lakh crore were processed through Google Pay via UPI. PhonePe remains the market leader.