PhonePe Introduces Processing Fee For UPI Recharge Payments: Users Are Not Happy

PhonePe one of the major unified UPI payment platforms in India has started to charge a small commission or processing fees for recharges done on its platforms using the UPI payment method. Say, you are recharging a pre-paid plan worth Rs. 499, PhonePe is currently charging either Rs. 500 or Rs. 501 for select users.

According to PhonePe, the company has started a small-scale experiment, where, it is charging a processing fee of Rs. 1 or Rs. 2 per transaction. According to some users, PhonePe is mentioning that the extra cost is considered as a platform fee, where a nominal amount will be charged for recharges and bill payments.

Is PhonePe The Only Platform To Do So?

Yes, as of now, PhonePe is the only platform that is charging a platform fee for recharges or bill payments that are done using UPI. Platforms like Google Pay, Amazon Pay, and Paytm still charge only the recharge amount and nothing extra, especially when you do the payment using UPI.

For some users, PhonePe is charging Rs. 2 even when they are recharging a plan worth Rs. 149, while for others, it is just charging Rs. 1 as a platform fee when they recharge a plan worth Rs. 399 or Rs. 499. A lot of people are not happy with this new move from PhonePe and are sharing their thoughts on the same via social media platforms.

Also note that when you do a pre-paid plan recharge on these platforms (PhonePe, Paytm, or Amazon Pay) they will earn a small commission from the telecom players, hence, this new policy from PhonePe will definitely make them lose a lot of customers if they don't take it back.

Some might also think it is just Rs. 2 rupees. However, when 100000 users make a recharge every day, PhonePe collects Rs. 200000 as a platform fee. On top of that, when there are platforms that offer free service why should one pay for the same?

UPI Payments Are Free

One of the main reasons for the popularisation of UPI payments in India is that are free. Though there are some limits on how much one could transfer on a single day, the process itself is free and the bank does not levy any charges for either the customer or the service provider.

@PhonePe_ ye to commission k upar commission ho gya..
Thanks for this additional charges. pic.twitter.com/eoehuU5ILz

— shubham ashish (@shubham_ashish1) October 19, 2021