PhonePe starts charging users for paying mobile bills. details here

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7;s group online payment app PhonePe has become the first app in the country to start charging for mobile recharge. Digital payment app PhonePe has started charging processing fees in the range of from 1 2 per transaction for mobile charges made for the above 50.

The company said that it is not charging anything for the mobile recharge below 50. For recharge between 50 more 100, it is charging 1 and up 100 mobile charges, phonepe Customers will be charged 2.

“On Recharge, we are running a very small scale experiment where some users are paying for mobile recharge. Below recharge 50 is not charged, recharge between 50 more 100 rupees 1 and above is charged 100 is charged 2. Essentially, as a part of the experiment, most of the users are either not paying anything or not paying Re 1,” PhonePe said.

And, like other players, PhonePe is also charging processing fee for payments made through credit cards. However, other transactions and money transfers on PhonePe will remain free.

To clarify on Bill Payments, “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 are a processing (referred as convenience fee on other platforms) only on credit card payments,” a PhonePe spokesperson said.

phonepe Third party apps have the largest share in terms of UPI transactions. The company had recorded over 165 crore UPI transactions on its platform in September, with the app segment accounting for over 40% share. PhonePe was founded in 2015 by former Flipkart executives Sameer Nigam, Rahul Chari and Burjin Engineer. The digital payment app has over 300 million registered users.

(with PTI inputs)

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