Walmart-owned digital payment app PhonePe will now charge users a processing fee for every transaction. This means that you will no longer be able to transfer money or recharge your phone without having to spend some extra money for every transaction. The company has said that it will charge fees in the range of Re 1 to Rs 2 per transaction for mobile recharges above Rs 50. PhonePe is the first payment app to start charging for UPI-based transactions.
Charges will have to be paid on recharge of more than Rs 50
For UPI-based transactions above Rs 50, PhonePe will charge a processing fee. If you do not spend up to Rs 50, you will not be charged any amount by the digital app. Like other payment apps, PhonePe will also start charging processing fees for payments made through credit cards. PhonePe is one of the most popular, widely used payment apps in India along with Paytm and Google Pay. According to a PTI report, it has recorded over 165 crore UPI transactions on its platform in September, with the app segment accounting for over 40%.
Read More: Noise sense bluetooth neckband price in india
Read More: Amazon Prime membership price hike will also affect telecom companies
Like Paytm and Google Pay, PhonePe can be used to transfer money with BHIM UPI, manage multiple bank accounts, check account balance, use SBI, HDFC, ICICI and 140+ banks Like adding multiple bank accounts can be done. Recharge prepaid mobile numbers like Jio, Vodafone, Idea, Airtel etc., recharge DTH like Tata Sky, Airtel Direct, Sun Direct, Videocon etc., pay different bills and much more. You can also buy or renew an insurance policy using PhonePe.
“At Recharge, we are running a very small scale experiment where some users are paying for mobile recharge. Recharges below Rs 50 are not charged, Re 1 is charged for recharges between Rs 50 and Rs 100 and Rs 2 is charged for recharges above Rs 100. Essentially, as a part of the experiment, most users are either paying nothing or paying Re 1. A PhonePe spokesperson told PTI. A PhonePe spokesperson told PTI.
PhonePe said, “We are not the only company or payment platform to charge fees. Charging a small fee on bill payment is now a standard industry practice and is also done by other biller websites and payment platforms. We only charge processing fee on credit card payments."