Google Pay to charge convenience fee on mobile recharges? Here's what we know

Google Pay now charges convenience fee on mobile recharges via UPI service. The convenience fee applies to both UPI and card transactions and is applicable on prepaid plans purchased through Google Pay.

Google Pay has introduced a new charge of Rs 3 for users who want to recharge their mobile phones using the app's UPI service.  Prepaid plan purchases made using Google Pay now incur a cost; this is a departure from the app's prior practise of not assessing additional fees for such transactions. With this latest measure, Google Pay now resembles other payment services like PhonePe and Paytm, which already charge for comparable transactions.

Google has not formally disclosed the inclusion of convenience fees on its payment app, notwithstanding this modification. The upgrade was made public by a client who posted a screenshot online of a Rs. 3 convenience fee that was part of a Rs. 749 Jio prepaid recharge package. There is a cost for both card and UPI transactions, as per reports.

Additional information was shared on Twitter by tipster Mukul Sharma, who mentioned that recharge plans under Rs. 100 will not levy a convenience fee. However, there would be fees of Rs. 2 and Rs. 3, respectively, for plans priced between Rs. 100 and Rs. 200 and Rs. 200 and Rs. 300. A convenience fee of Rs. 3 will be applied to transactions over Rs. 300.

Google has made reference to the new convenience fees in an update to its terms of service for Indian customers. It's still unclear, though, if this addition was included in the November 10 update. According to the agreements, consumers will be made aware of any relevant costs prior to completing a purchase. It is also mentioned in the agreements that costs may be decided at the company's sole discretion.

This change in Google Pay's policy follows a trend set by other payment service providers, such as Paytm and PhonePe, aiming to monetize their platforms by introducing fees for transactions.