Google Pay app users will now be charged extra for certain utility services such as gas cylinder bookings, electricity bill payments, DTH recharges, and FASTag recharges. The charges could range from 0.5% to 1%. Additionally, a GST will be applicable on the convenience fee for these payments. This change comes after Google Pay introduced a service charge for mobile recharges in 2023, where users had to pay an additional fee of up to ₹3. On the other hand, PhonePe charges up to ₹2 for recharges, with the fee varying depending on the recharge amount.
Furthermore, there has been a noticeable difference in the transaction volumes between Google Pay and PhonePe. In January 2025, Google Pay processed a total of ₹8.26 lakh crore in transactions, while PhonePe led the payments sector with ₹11.91 lakh crore in transactions. Other platforms such as Paytm saw ₹1.26 lakh crore, Cred ₹49.48 thousand crore, and Navi app ₹13.22 thousand crore in transactions.
Additionally, a significant number of transactions have taken place through UPI. In February 2025, UPI transactions amounted to ₹13.92 lakh crore, while in January 2025, UPI transactions reached ₹23.48 lakh crore. This showed a 1% increase from December 2024 and a 39% rise compared to January 2024.
On October 3, at its annual event “Google for India,” Google made another major announcement. Google Pay will now offer gold loan services, allowing users to avail of gold loans. Additionally, Google announced the availability of Gemini AI in Hindi and 8 other Indian languages, offering improved services to Indian users.
Shashi Rai
