Google, Paytm, PhonePe Now Charging for UPI—Here’s How Much

Google Pay has introduced a convenience fee for credit/debit card bill payments, ranging from 0.5% to 1% plus GST. This mirrors similar charges by PhonePe and Paytm. Meanwhile, direct UPI bank transfers remain fee-free.

Google Pay’s Convenience Fee Limited to Card Transactions

Google Pay has started imposing a convenience fee for payments made via credit and debit cards, affecting transactions such as electricity and cooking gas bills.

Previously, these payments were free for low-value transactions, but now the platform charges between 0.5% and 1% plus GST.

According to Google Pay’s website, this new fee applies only to payments made using credit and debit cards.

UPI-Linked Bank Account Transactions Remain Free

Despite these changes, users can continue making payments without any extra charges if they use UPI directly linked to their bank account. This ensures that regular users making bill payments or money transfers via bank accounts do not have to pay any additional fees.

Other UPI Platforms Also Charge Fees

Google Pay is not the only platform implementing additional charges. PhonePe also imposes convenience fees on card transactions for certain bill payments, such as water, piped gas, and electricity.

Meanwhile, Paytm has a broader structure, applying platform fees between ₹1 and ₹40 for various UPI transactions, including recharges, gas bills, water bills, and credit card payments.

UPI Transactions Continue to Grow

Despite these challenges, UPI continues to see robust growth. In January 2025 alone, UPI recorded 16.99 billion transactions, totalling ₹23.48 lakh crore.

This represents a 1.55% increase in transaction volume and a 1% rise in value compared to December 2024, reflecting a strong 39% year-on-year growth.

Conclusion

Google Pay’s introduction of convenience fees for credit and debit card transactions aligns it with platforms like PhonePe and Paytm, signalling a broader shift in UPI-based digital payments.

While direct UPI bank transfers remain free, users relying on card payments for bills may need to account for additional costs. Despite these changes, UPI transaction volumes continue to grow, reflecting strong adoption and government-backed support for digital payments.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.