Now, a fee on UPI Google Pay transactions!
Learn how the UPI payment system has transformed digital payments in India, bringing convenience to rural areas and everyday transactions. Discover the recent developments with Google Pay charging transaction fees and its implications for users. Stay updated with the latest business trends in the digital payment landscape.
In India, the UPI payment system has now reached even the most remote villages in the country. This is due to the fact that when Prime Minister Modi announced the demonetization process, payment apps became accessible to the common people. Currently, the UPI payment system in India allows people to make payments without any additional charges, leading to a shift away from the use of physical currency. Moreover, the opening of zero-balance bank accounts under the Jan Dhan Yojana before this also brought the digital payment system closer to the people. In this process, several apps like Paytm, Google Pay, PhonePe, NaviPay, and Cred have become very popular with the public. People are widely using these apps, primarily because there are no additional transaction charges.
It seems that the American tech giant, which operates Google Pay in India, is now considering charging a transaction fee for payments from users. As part of this, Google Pay has started collecting a convenience fee for bill payments made through credit and debit cards, which has shocked many users. In this process, Google has decided to impose a fee ranging from 0.5% to 1% on transaction values along with GST. As UPI payment usage is increasing in the country, the tech giant is reportedly considering monetizing UPI transactions to cover processing costs.
Already, the popular digital payment app PhonePe is charging processing fees for utility payments like water bills, electricity bills, internet bills, school fees, DTH recharges, and mobile phone recharges. Several digital payment platforms in the market are already offering good cashback offers on credit card bill payments. The successful UPI payment system in India has gained international recognition. It is widely used by everyone from street vendors to shopping malls across the country and continues to lead the sector. However, after India, countries like Brazil, China, Thailand, and South Korea are following in digital payments.
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