If you use Google Pay to pay your electricity, water, or gas bills, you might have to pay extra now. Just like PhonePe and Paytm, Google Pay has started charging a processing fee for bill payments made through credit and debit cards. This fee ranges between 0.5% to 1% plus GST. However, if you pay directly through UPI from your bank account, there will be no extra charges.

Google Pay’s New Charges on Bill Payments

Earlier, Google Pay did not charge any fee for small transactions, but now things have changed. Users making payments via credit or debit cards will see a convenience fee added to their bills.

For example, a customer paying an electricity bill using a credit card noticed an extra charge of ₹15, which included GST. Google Pay has clearly mentioned on its website that these fees apply only to card payments, while UPI transactions remain free.

PhonePe and Paytm Were Already Charging Fees

Google Pay is not the first platform to introduce these charges. PhonePe and Paytm had already been charging processing fees for bill payments, mobile recharges, and other services. Now, Google Pay has also followed the same approach.

UPI Payments Stay Free

Google Pay is one of the top UPI payment platforms, holding about 37% of the market share. In January, the app processed UPI transactions worth ₹8.26 lakh crore. Earlier, Google Pay used to cover the processing costs, but now it is passing this cost to users.

The good news is that if you make payments directly from your bank account using UPI, there will be no extra charges. This means you can continue using Google Pay without paying any additional fees—as long as you avoid using credit or debit cards for bill payments.