UPI apps turn to fees as government incentives shrink

As government incentives for low-value UPI transactions and RuPay debit card payments reduces, UPI apps are increasingly seeking new ways to monetise their vast customer base, including imposing convenience fees on certain transactions.

For instance, recently, Google Pay introduced a convenience fee of 0.5–1% on payments such as electricity and cooking gas bills made via credit and debit cards. These services were previously free for low-value transactions.