Google Pay Introduces Convenience Fee on Card-Based Bill Payments
In a significant update for its users, Google Pay, one of India’s most widely used digital payment platforms, has begun charging a convenience fee for bill payments made via credit and debit cards. This move signals the end of fee-free transactions for millions of users who rely on the platform for essential services like electricity, water, and gas payments.
According to details provided on Google Pay’s website, the convenience fee is set between 0.5% and 1% of the transaction amount, with the addition of applicable Goods and Services Tax (GST). Notably, payments made directly through Unified Payments Interface (UPI)-linked bank accounts remain exempt from this fee.
This recent change follows a similar step taken by Google Pay over a year ago, when it introduced a ₹3 convenience fee for mobile recharges. The platform’s decision to monetize certain transactions aligns with a growing trend among digital payment services that are balancing revenue generation with user experience.
For many users, this change underscores the shifting dynamics of the digital payment ecosystem in India. While UPI transactions continue to remain free, the introduction of card-based fees may prompt users to reassess their preferred payment methods.
Google Pay’s growing efforts to diversify revenue streams highlight the platform’s strategy to stay competitive while offering seamless services. However, this decision could also face scrutiny, as convenience fees add an additional cost burden on users who prefer using cards for their payments.
