PhonePe starts charging transaction fees on mobile recharge for the first time
By Sanjay Maurya
News Highlights
- The company is the first digital payment app to charge for UPI-based transactions.
- Walmart group PhonePe is also charging processing fees for the transaction made through credit cards.
- Charging a small fee for bill payments has become industry standard, said the spokesperson.
PhonePe, a Walmart-owned digital payments company, has begun imposing processing costs of Re 1 to Rs 2 for every transaction for cellphone recharges worth more than INR 50, even when done through UPI. The startup is the first digital payment app to charge for UPI-based transactions, which are currently available for free from competitors. Like other companies, Walmart group PhonePe is also charging processing fees for the transaction made through credit cards.
PhonePe
- Industry – Internet
- Company size – 1,001-5,000 employees
- Headquarters – Bengaluru, Karnataka
- Type – Privately Held
- Founded – 2015
- Specialties – Mobile Payments, Digital Payments, and P2P Payments
PhonePe can be used to send money using BHIM UPI, manage multiple bank accounts, monitor account balances, and save beneficiaries from SBI, HDFC, ICICI, and other 140+ banks. Recharge prepaid mobile numbers such as Jio, Vodafone, Idea, Airtel, and others, as well as DTH providers such as Tata Sky, Airtel Direct, Sun Direct, Videocon, and others, and pay various bills. PhonePe can also be used to purchase or renew insurance plans.
On recharges, we are doing a very small-scale trial where a few users are paying for mobile recharges, PhonePe stated in a statement. Recharges of less than INR 50 are not allowed, recharges of INR 50 to INR 100 are charged INR 1, and recharges of more than 100 are charged INR 2. Essentially, the bulk of consumers are either not paying anything or paying Re 1 as part of the trial.
The Company will begin charging processing fees for credit card payments in the same way that other payment applications have. Along with Paytm and Google Pay, PhonePe is one of India’s most popular and commonly utilized payment apps.
Phone Pe like other company charges extra on the credit card as per the statements PhonePe is not alone in the market that charges extra, many platforms did this. To be clear about bill payments, we aren’t the only one who charges a fee or uses a third-party payment platform. Charging a small fee for bill payments has become industry standard, and other biller websites and payment systems follow suit. Only credit card payments are subject to a processing fee (also known as a convenience fee on other platforms), added the spokeswoman.
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