Google Pay introduces convenience fee on bill payments via credit, debit cards: Report

Digital payments are increasing in India. Cashless transactions have grown significantly, from small vendors to large showrooms. Payment companies are now introducing charges for certain services. Google Pay has announced a key decision regarding transaction fees.

UPI payments are used by almost everyone with a smartphone. The digital revolution and increased internet access have led to a surge in digital transactions. UPI companies, which previously offered free services, are now starting to charge fees.

Some companies like PhonePe already charge service fees for mobile recharges and other services. Google Pay has announced it will charge fees for transactions, specifically for credit and debit card bill payments.

Google Pay will charge users a processing fee of 0.5% to 1% plus GST for credit/debit card transactions like utility bill payments. This cost was previously borne by the company.

No convenience fee will be charged for transactions from bank accounts or wallets. Other payment platforms like PhonePe and Paytm have also started charging fees, such as platform fees for mobile recharges.

Despite the new charges, UPI transactions continue to rise. In January 2025, 16.99 billion UPI transactions worth ₹23.48 lakh crore were recorded, a 39% year-on-year increase.