UPI Convenience Fees Explained: Charges on Google Pay, PhonePe & Paytm, Free Option with BHIM UPI.
The new convenience fees applied to bill payments made through UPI apps like Google Pay, PhonePe, and Paytm when using credit or debit cards. It highlights that direct bank account payments via UPI remain free, while BHIM UPI continues to offer zero charges for all transactions. The post also details the fee structure, ranging from 0.5% to 1% plus GST, and guides users on how to avoid additional charges.

UPI Payments to Attract Convenience Fees on Select Transactions: What Users Need to Know
Unified Payments Interface (UPI) services, widely used across India through apps like Google Pay, PhonePe, and Paytm, will now introduce convenience fees for certain transactions. While UPI remains free for direct bank account payments, charges will apply when using credit or debit cards for bill payments such as electricity, gas, water, and mobile bills.
Key Points:
No fees for payments made directly from linked bank accounts.
Convenience fees apply only when paying via credit or debit cards through UPI apps.
Charges range from 0.5% to 1% of the bill amount, along with GST.
Example: An electricity bill may incur an additional fee of around ₹15.
Apps like PhonePe and Paytm already impose such fees, and now Google Pay has joined them.
However, there’s good news for users of BHIM UPI, operated under the National Payments Corporation of India (NPCI). Transactions via BHIM UPI will remain completely free, as it functions directly under the Central Government's Digital India initiative.
For users seeking fee-free and secure UPI services, BHIM UPI remains a reliable option. Additionally, it offers features like the UPI Circle, allowing users to utilize a secondary account without linking a primary bank account — a unique feature not yet available on other UPI apps.
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