PhonePe, a digital payments app owned by Walmart, will now charge a processing fee for each transaction it processes. Therefore, transferring money or charging your phone will no longer be possible without spending a little amount of additional money on each and every transaction.
The business has stated that it will impose fees ranging from Rs 1 to Rs 2 per transaction for cellphone recharges with a value greater than Rs 50, depending on the service provider. PhonePe is the first payments app to charge for transactions, having done so as early as 2014.
We are doing a very small-scale experiment with cellphone recharges, in which a tiny number of consumers are paying for mobile recharges. Payment is not collected for recharges below Rs 50, recharges between Rs 50 and Rs 100 are charged Re 1, and recharges over Rs 100 are charged Re 2. A PhonePe representative told PTI that “basically, as a part of the trial, the vast majority of consumers are either not paying anything or paying Re 1.”
In order to conduct UPI-based transactions with a value of more than Rs 50, PhonePe charges a processing fee of Rs 1. If you do not spend up to Rs 50 on the digital app, you will not be charged any money by the digital application.
PhonePe will begin collecting processing fees for payments made using credit cards in the same way that other payment applications have done so. PhonePe, along with Paytm and Google Pay, is one of the most popular and widely-used payment apps in India, accounting for a significant portion of total payments.
According to a PTI report, the company processed over 165 million UPI transactions on its platform in September, accounting for more than 40% of all UPI transactions in the app category.
“We are not the only player or payment platform that charges a fee,” says the author. In addition to biller websites and payment platforms, additional biller websites and payment platforms are now charging a modest fee to process bill payments. A processing fee (also known as a convenience fee on other platforms) is charged solely on purchases made using credit cards, according to a spokeswoman for the company.
For the uninitiated, PhonePe, like Paytm and Google Pay, can be used to transfer money via BHIM UPI, manage multiple bank accounts, check account balance, and save beneficiaries across numerous bank accounts, including SBI, HDFC, ICICI, and more than 140 banks.
Recharge prepaid mobile numbers such as Jio, Vodafone, Idea, Airtel, and others, recharge DTH services such as Tata Sky, Airtel Direct, Sun Direct, Videocon, and others, and pay a variety of bills. Insurance plans may also be purchased or renewed using PhonePe.