Why was it decided to impose facility fee on Google Pay?
Google is one of the most commonly used UPI apps in India. Apps like Phonpe and Paytm have already implemented processing fee for selected services. This decision has been taken because Fintech companies do not make any direct profit from UPI transactions. Due to the cost of UPI transactions, apps like Phonpe, Paytm and Google Pay have decided to impose facility fees on select payments.
Which users will be affected?
Google can levy facility fee on utility payments like electricity bill and gas bills. According to an Economic Times report, if you pay your electricity or gas bill using Google Pay via Credit Card or Debit Card, you may have to pay a facility of 0.5% to 1%. Apart from this, GST will also be imposed on this fee.
What will change with the new fee?
1. Since Fintech companies do not make direct profit from UPI transactions, fee will be imposed for select transactions.
What does this mean for you?
If you use credit or debit cards to pay your electricity bill, gas bill or other utility bills through Google Pay, now you have to pay additional fees. Therefore, after knowing how much fee is applicable on which payment is applicable, it would be beneficial to consider alternative payment methods.
