Phonepe Transaction Fees: Now mobile recharge through PhonePe has become expensive. Digital payment company PhonePe has started levying transaction fees on some transactions including UPI.
Phonepe Transaction Fees: From recharging mobile to paying the electricity bills and buying goods from grocery stores, you must have paid for many online orders using the PhonePe app. But there is bad news for PhonePe users, in fact, mobile recharge through PhonePe has become expensive. Walmart-owned digital payments company PhonePe has started levying transaction fees on certain transactions, including UPI. Let us inform you that in September, the company had registered more than 165 crore UPI transactions on its platform.
Recharge of Re 1 will be charged on mobile recharge above Rs 50
It is worth noting that the company (PhonePe) is the first digital payment app to start charging for UPI-based transactions. At the same time, this service is being provided by its competing companies for free. The digital payment app has started charging processing fees ranging from Re 1 to Rs 2 on every transaction for mobile recharge above Rs 50. PhonePe users will be charged Re 1 for recharge between Rs 50 and Rs 100. On the other hand, for recharge above Rs 100, a fee of Rs 2 will be charged.
No charges on recharge below Rs 50
PhonePe said in a statement, “At Recharge, we are experimenting on a very small scale where few users are paying for mobile recharge. There is no charge for recharge of less than Rs 50. On the other hand, for recharge between Rs 50 and Rs 100, Rs 1 and above is charged. There is a fee of Rs 2 on recharge above 100. Essentially, being part of the experiments, most users are either not paying anything or paying Re 1.
PhonePe will begin charging handling expenses for installments made utilizing Visas in a similar way as other installment applications. PhonePe, along with Paytm and Google Pay, is the most popular and widely used payment apps in India.
Charging Small Fees on Bill Payments Standard Industry Practice
Regarding bill payments, a PhonePe spokesperson said, “We are not the only player or payment platform to charge a fee. Charging a small fee on bill payment is now a standard industry practice and is also done through other biller websites and payment platforms.” We charge a processing piece (called as convenience fee on other platforms) which is charged only on credit card payments.”
PhonePe did over 165 crore UPI transactions on its platform in September
PhonePe has the largest share in terms of UPI transactions in third-party apps. The company had recorded over 165 crores UPI transactions on its platform in September, with the app segment accounting for over 40% share. PhonePe was established in 2015 by previous Flipkart leaders Sameer Nigam, Rahul Chari and Burjin Engineer. The digital payment app has over 300 million registered users.
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