PhonePe has started charging processing fees ranging between Re 1 to Rs 2 per transaction for mobile recharges exceeding Rs 50.
PhonePe has started charging processing fees ranging between Re 1 to Rs 2 per transaction for mobile recharges exceeding Rs 50. Rivals such as GooglePay, Paytm and Amazon among a host of others continue to offer the service for free. The company like its peers has been charging processing fees for facilitating credit card transactions.
"On recharges, we are running a very small-scale experiment where a few users are paying for mobile recharges. Recharges below Rs 50 are not charged, recharges between Rs 50 and Rs 100 are charged Re 1 and above Rs 100 are charged Rs 2. Essentially, as a part of the experiment, a majority of users are either not paying anything or paying Re 1," a PhonePe spokesperson said.
It added that the company was not alone in charging a fee on bill payments. The spokesperson clarified, "Charging a small fee on bill payments is now a standard industry practice and is done by other biller websites and payment platforms also. We charge a processing fee (called as convenience fee on other platforms) on payments with credit cards only."
The digital transaction facilitator had recorded over 165 crore UPI transactions on its platform in September, recording over 40 per cent share in the app segment.
National Payments Corporation of India had placed a cap on the market share for UPI. It stated no player would be allowed to hold a market share exceeding thirty per cent.
(With inputs from PTI)