Previously, these transactions were free of charge. The fee, which is subject to Goods and Services Tax (GST), ranges from 0.5% to 1% of the total transaction amount. Other Unified Payments Interface (UPI) platforms, including PhonePe and Paytm, have implemented similar charges.
Users who have paid electricity bills with credit cards have noticed a convenience fee of approximately INR 15, the Economic Times reported. The fee, listed as a processing charge for card transactions, includes GST in the total amount. However, payments made directly through UPI from linked bank accounts remain free.
Other digital payment platforms have also adopted similar pricing structures. PhonePe imposes convenience fees on electricity, water, and piped gas bill payments made through cards. Paytm applies different charges for various bill payments, including credit card settlements and utility bills, with fees ranging between INR 1 and INR 40, depending on the transaction value. These adjustments align with a wider industry shift toward monetising transactions to support operational expenses.
The changes primarily affect users who rely on credit or debit cards for bill payments. Many have expressed concerns about the additional charges, with some debating whether such fees could discourage digital payment adoption.
Meanwhile, others recognise the move as a necessary step for fintech companies to maintain sustainable business models. While UPI transactions directly linked to bank accounts remain free, there is ongoing uncertainty regarding potential fees for other services that payment platforms may introduce in the future.
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