Google Pay Reportedly Levies Convenience Fees on Bill Payments via Credit and Debit Cards

Google Pay is now levying convenience fees on bill payments made via credit and debit cards, according to a report. Until now, the unified payments interface (UPI) platform was charging users Rs. 3 as a service fee on mobile recharges. However, it will now reportedly also levy a charge, in addition to the goods and service tax (GST), on utility bill payments for services such as electricity, piped gas, and water.

Google Pay's Convenience Fees on Bill Payments

According to a report by the Economic Times, the Google-owned UPI platform will charge users between 0.5 to 1 percent of the transaction value as a convenience fee, along with applicable GST on utility bill payments. It is reportedly labelled as a “processing fee” for debit and credit card transactions.

With this move, Google Pay has followed in the footsteps of other UPI platforms such as Paytm and PhonePe. While the former levies a charge between Rs. 1 to Rs. 40, the latter charges the same as Google Pay on bill payments via debit and credit cards. Citing an individual familiar with the matter, the report claims that the addition of the convenience fee indicates a shift towards making it a common industry practice.

As per a PWC analysis, Google Pay and other UPI platforms incur a fee of 0.25 percent of the total transaction value while processing peer-to-merchant transactions. While Google Pay previously covered this fee on the user's behalf, it will now charge them between 0.5 to 1 percent, depending on the transaction type and value. However, the company emphasises that this only applies to debit and credit card payments and payments made via UPI-linked bank accounts remain unaffected.

Notably, 16.99 billion UPI payments in India were reportedly recorded in January 2025, amounting to a total of Rs. 23.48 lakh crore. This is said to be an increase of 1 percent in terms of the transaction value compared to December 2024.