Google Pay Starts Charging Convenience Fee For Mobile Recharges

Google Pay, the second most popular online payment app in India, might start levying convenience fees on users who recharge their prepaid phones from the app. Google Pay and other contactless digital transaction apps like PhonePe and Paytm facilitate about 96 percent of all UPI transactions in India. And while the other apps already charged a convenience fee for mobile recharges, Google Pay attracted many users who didn’t want to pay the additional charge. However, it seems like the app is about to lose the perk soon.

Tipster Pays Convenience Fees For Mobile Recharge Via Google Pay

Known Indian tipster Mukul Sharma took to his X (formerly known as Twitter) account to share how he was charged an additional Rs. 3 as convenience fees for recharging his Jio prepaid SIM. The recharge in concern costs Rs. 749, but he had to pay Rs. 752. Further, the tipster also shares the convenience fee rates, which happen to be Rs. 1 for recharge amounts between Rs. 101 to Rs. 200, Rs. 2 for recharge amounts between Rs. 201 to Rs. 300, and Rs. 3 for recharge amounts of Rs. 301 and above.

Do Users Have To Pay A Convenience Fees For All Transactions?

Although the convenience fee is limited to mobile recharges, people can still use Google Pay to make other transactions, such as paying electricity bills or paying at a shop using the QR code. Weirdly, there wasn’t any official announcement from Google regarding the same. However, the company updated the app’s terms of service on November 10, 2023, introducing “Google Fees,” which explains the convenience fees.

Is There A Way To Avoid The Convenience Fee?

To go around the Google Pay convenience fee, users can purchase recharge plans using the company’s official app or website, where they can pay using UPI, credit/debit card, or other payment modes. Another platform that doesn’t charge any type of fee for recharging prepaid mobile phones is Amazon Pay. It even saves the number you recharge and sends you reminders for when the plan ends.

Why Is The Convenience Fee Vital For Google Pay And Its Future?

The convenience fee is a way for Google to monetize the payment service. Behind the easy, few-tap payments we make daily, there is a sophisticated IT infrastructure and a team of developers/customer care representatives, and Google incurs all their costs. However, as the number of UPI transactions via the app increases, it would become more challenging for the company to keep up with the demand unless they spend more money to expand their service, which is where convenience fees become vital.

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