For millions of consumers paying for necessities like gas and electricity, the days of cost-free transactions are over as Google Pay, one of India's leading digital payment platforms, has begun charging a convenience charge for bill payments made using credit and debit cards.

In addition to the appropriate Goods and Services Tax (GST), the recently implemented charge, according to Google Pay's website, varies from 0.5% to 1% of the transaction amount. Direct transactions done using bank accounts connected to UPI, however, are unaffected. The modification comes after Google Pay decided more than a year ago to levy a 3 rupee convenience fee for cellphone recharges.

The Economic Times was informed by a person with knowledge of the situation that Google Pay's implementation of platform fees is part of a broader trend in the industry to monetize UPI transactions. Fintech companies are looking for methods to make their business models financially sustainable as the use of digital payments grows.

With over 37% of transactions, Google Pay presently commands a substantial portion of the UPI industry, second only to Walmart-backed PhonePe. The platform handled transactions of Rs 8.26 trillion in January 2025.

Google Pay is not the only service that has implemented convenience fees. In addition, PhonePe charges fees for using credit and debit cards to pay bills, such as those for gas and water. According to statistics on its website, Paytm, another significant participant in India's digital payments market, charges platform fees for UPI recharge and bill payments that range from Rs 1 to Rs 40.