Google Pay Starts Charging Convenience Fee For Mobile Recharges،
Google Pay, India’s second most popular online payment app, may start charging convenience fees to users who recharge their prepaid phones from the app. Google Pay and other contactless digital transaction apps like PhonePe and Paytm facilitate around 96% of all UPI transactions in India. And while other apps already charged convenience fees for mobile top-ups, Google Pay attracted many users who didn’t want to pay extra fees. However, it looks like the app is about to lose this advantage soon.
Tipster pays convenience fee for mobile recharge via Google Pay
Well-known Indian tipster Mukul Sharma took to his X account (formerly known as Twitter) to share how he was charged Rs. 1,000,000 extra. 3 as a convenience fee for recharging one’s Jio prepaid SIM card. The affected recharge costs Rs. 749, but he had to pay 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 convenience fees for all transactions?
Although the convenience fee is limited to mobile top-ups, users can still use Google Pay to make other transactions, such as paying electricity bills or paying at a store using the QR code. Oddly, there has been no official announcement from Google on this. However, the company updated the app’s terms of service on November 10, 2023, introducing “Google Fees”, which explains convenience fees.
Is there a way to avoid convenience fees?
To bypass Google Pay convenience fees, 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 methods. Amazon Pay is another platform that does not charge any fees to recharge prepaid mobile phones. It even saves the number you recharge and sends you reminders for the end of the plan.
Why are convenience fees vital to Google Pay and its future?
Convenience fees are a way for Google to monetize the payments service. Behind the simple, few-click payments we make every day is a sophisticated IT infrastructure and a team of developers/customer service representatives, and Google bears all their costs. However, as the number of UPI transactions through the app increases, it will become harder for the company to meet demand unless it spends more money to expand its service, and that’s where the fees convenience become essential.
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