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Google Pay has introduced a convenience fee for certain bill payments such as electricity, water and cooking gas, made through debit and credit cards. The fee is between 0.5% to 1% on the transaction value and will also include Goods and Services Tax (GST). This comes as a shift to those who previously made free payments for such bills through the platform.
Google Pay, one of the most popular UPI platforms, has reportedly introduced a convenience fee for electricity and gas bill payments.
— Zee News English (@ZeeNewsEnglish) February 20, 2025
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The new fees apply to only card payments. Payments made using UPI directly from bank accounts will remain free. Customer paid his electricity bill through a credit card, reported being charged a processing fee of Rs 15 including GST. Google pay already introduced the convenience fee of Rs 3 for mobile recharges over a year ago.
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An industry insider revealed to the financial daily that the introduction of Google Pay’s platform fees for bill payments indicates a larger trend toward the monetization of UPI transactions, as service providers seek to recover payment processing expenses. The source added that this is a moment for fintech to achieve a balance between growth and sustainable revenue.
