Google Pay, one of the most popular UPI platforms, has reportedly introduced a convenience fee for electricity and gas bill payments. This fee applies to customers who have been enjoying free transactions for low-value bills until now, as per a report by Economic Times. However, Google Pay has not yet officially confirmed or commented on the new charges.
The fees on Google Pay vary between 0.5 per cent to 1 per cent of the transaction amount, along with any applicable GST.
As per a report from the Economic Times, Google Pay had introduced a Rs 3 convenience fee for mobile recharges about a year ago. The report also mentions that when paying an electricity bill using a credit card, customers were charged around Rs 15 as a “processing fee for debit and credit card transactions,” with GST added on top.
In 2020, the Indian government waived the Merchant Discount Rate (MDR) for UPI transactions under Rs 2,000 to encourage digital payments. While the government covers the cost for these transactions, platforms still face difficulty in generating direct revenue from users. Despite these challenges, UPI usage is booming, with 16.99 billion transactions worth Rs 23.48 lakh crore recorded in January 2025, showing a 39 per cent growth compared to the previous year.
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