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. 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. This shift aligns Google Pay with other UPI platforms like PhonePe and Paytm, which have already implemented similar fees.

According to Google Pay’s website, this new fee applies only to payments made using credit and debit cards. However, transactions made through UPI directly linked to a bank account remain free. The exact date when this convenience fee was introduced remains unclear.

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.

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