New Delhi: PhonePe has started charging processing charges on mobile recharges done for recharges above Rs 50. Walmart Group’s digital payments firm is also charging a processing fee of Re 1 to Rs 2 per transaction through UPI.
PhonePe is apparently the first digital payment platform to start charging processing fees for UPI-based mobile recharges. Its competitors like GooglePe and Paytm currently do not charge customers for UPI recharge.
“On Recharge, we are running a very small scale experiment where some users are paying for mobile recharge. Recharges below Rs 50 are not charged, recharges between Rs 50 and Rs 100 are charged. Rs.2 is charged for Rs.100 and above Rs.100. Essentially, as a part of the experiment, most users are either not paying anything or not paying Re 1,” says PhonePe spokesman said.
Currently, PhonePe enjoys the largest share in terms of UPI transactions between third-party apps, followed by GooglePay. In September 2021, the app had seen over 165 crore UPI transactions on its platform, registering a market share of over 40 per cent.
“We are not the only player or payment platform to charge fees. Charging a small fee on bill payments is now a standard industry practice and is also done by other biller websites and payment platforms. We charge a processing fee (called a convenience fee). other platforms) only on credit card payments,” the spokesperson said. Read also: EFPO starts collecting 8.5% PF interest before Diwali: Check how to withdraw money in 1 hour
However, to make mobile recharge still attractive, PhonePe has also decided to offer guaranteed cashback to the customers. The company said that users recharging through the PhonePe app will win assured cashback of up to Rs 50 on prepaid mobile recharge. This will be applicable to users after completing three prepaid mobile recharges above Rs 51. Read also: Paytm IPO: SEBI nod to fintech firm for Rs 16,600 crore mega offer
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