If you use Google Pay to pay electricity, gas, or water bills, this update is important for you. Google Pay has now started charging a convenience fee on utility bill payments.
Previously, there were no charges for small transactions, but now a fee of 0.5% to 1% plus GST will apply when paying through debit or credit cards.
However, if you make payments directly from your bank account via UPI, there will be no additional charge.
This charge applies to payments for electricity, water, and gas bills. A year ago, Google Pay introduced a Rs 3 charge on mobile recharges, and now similar charges have been implemented for bill payments.
Other Payment Apps Also Charge Fees
Google Pay is not the only platform applying these fees. PhonePe and Paytm have already been charging processing fees on bill payments, mobile recharges, and other services. Now, Google Pay has followed the same approach.
For example, when paying an electricity bill via credit card on Google Pay, a customer had to pay a convenience fee of about Rs 15, including GST. This fee is also referred to as a processing charge for debit and credit card payments.
UPI Payments Remain Free
Google Pay has a large share of UPI transactions, around 37%, making it the second-largest platform for UPI payments after PhonePe.
In January alone, Google Pay processed UPI transactions worth Rs 8.26 lakh crore.
Earlier, Google Pay covered the processing costs itself, but now users will have to pay these charges.
According to the Google Pay website, a convenience fee will be charged for card payments, while payments directly from a bank account via UPI will remain free.
