Google Pay has introduced a convenience fee for utility bill payments—including electricity, water, and cooking gas—when paid using credit or debit cards. The fee ranges between 0.5% and 1% of the transaction amount, plus applicable Goods and Services Tax (GST).
This follows Google Pay’s 2023 decision to implement a convenience fee of Rs 3 for mobile recharges.
With this change, Google Pay aligns with other digital payment platforms like Paytm and PhonePe, which already impose similar charges. PhonePe applies convenience fees on card-based transactions for select bill payments, including water, piped gas, and some electricity bills.
Paytm, on the other hand, charges a platform fee ranging from Rs 1 to Rs 40 for mobile recharges via UPI and bill payments, covering utilities like gas, water, and credit card payments.
How Does the Fee Work on Google Pay?
According to Google Pay’s Pay Bills support terms and conditions, users can pay bills for mobile, TV, electricity, water, and gas through the platform. However, a convenience fee applies when using a credit, debit, or RuPay card for these payments.
The fee amount varies based on factors like the bill amount. Google Pay ensures transparency by notifying users of the exact charge before they complete the transaction.
Are UPI Transactions Between Bank Accounts Still Free?
Yes, UPI transactions between bank accounts remain free for regular users. If you make payments using UPI directly from your linked bank account, no extra charges apply.
When using UPI apps like Google Pay, PhonePe, Paytm, or BHIM UPI and selecting a bank account as the payment source, users can:
- Send money to other bank accounts (P2P) for free.
- Pay merchants (P2M) using UPI without charges.
- Scan QR codes and make UPI payments directly from their bank accounts at no cost.
When Do UPI Charges Apply?
The National Payments Corporation of India (NPCI), the body governing UPI, ensures that bank-to-bank UPI transactions remain free to promote digital payments. While it has not directly imposed charges on users, it allows platforms to apply fees in specific cases:
Interchange Fees for High-Value Merchant Transactions (Businesses Only)
NPCI introduced an interchange fee of up to 1.1% on UPI payments made via RuPay credit cards and certain wallet-based transactions.
This fee is paid by businesses (merchants), not regular users.
It applies mainly to transactions exceeding Rs 2,000, including retail purchases and some online payments.
Fees on UPI Wallet Transactions
Some platforms charge a fee when users add money to digital wallets (e.g., Paytm Wallet, PhonePe Wallet) using UPI.
However, wallet-to-wallet transfers and UPI transactions from linked bank accounts remain free.
Lastly, the charges on UPI payments made via credit and debit cards—recently introduced by Google Pay—are already in place on Paytm and PhonePe.
UPI Charges Breakdown: Who Pays What?