Google Pay Begins Charging Convenience Fee on Mobile Recharge Transactions
Google Pay, one of the most widely used online payment apps in India, has started imposing an additional fee on consumers for prepaid recharge purchases. This move follows in the footsteps of other popular payment apps in the country, such as PhonePe and Paytm. With over 60 million active users, Google Pay is the second-most popular payment app in India, known for its P2M and P2P UPI transactions.
The Shift Towards Convenience Costs
Previously, users were only required to pay the amount charged by the telecom operator for the service, making it a completely free service. However, it seems that Google is now exploring ways to generate revenue from India's multibillion-dollar digital payments industry. As a result, users who recharge their mobile prepaid plans through Google Pay may soon be subject to convenience costs of up to 3 rupees. This means that the only way to avoid these charges is to purchase recharge plans directly from the operator's website.
Limited Impact on Other Transactions
Currently, Google Pay only applies convenience costs to mobile recharges. Other transactions, such as paying utility bills, remain free of any additional fees. UPI transactions, both for personal and commercial use, also do not incur any charges on Google Pay.
Changes in Terms of Service
Although Google has not yet made an official announcement regarding the new convenience charge adjustment, it secretly updated its Terms of Service for India on November 10, 2023. This suggests that the introduction of convenience fees on mobile recharge transactions is a deliberate move by Google to explore monetization opportunities in the Indian digital payments industry.
As Google Pay follows in the footsteps of other payment apps, it remains to be seen how Indian users will respond to this new development. With the convenience costs in place, users may consider alternative platforms or opt to purchase recharge plans directly from the telecom operator's website to avoid additional fees.
