Popular digital payments app, PhonePe has now started charging Re 1 to Rs 2 processing fees per transaction for mobile recharges made above Rs 50. This makes it the first digital payments app to have started to charge for a UPI-based transaction. Also Read - WhatsApp allowed to double its payments service user base by NPCI: Report
The company has stated that it is currently running an experiment with a small number of users where it is charging its users Rs 0 for recharges under Rs 50, Re 1 for users recharging between Rs 51 and Rs 100, and lastly Rs 2 for users recharging with an amount of over Rs 100. Also Read - Google News Showcase gets support for Malayalam and Bengali
“On recharges, we are running a very small-scale experiment where a few users are paying for mobile recharges. Recharges below Rs 50 are not charged, recharges between Rs 50 and Rs 100 are charged Re 1 and above Rs 100 are charged Rs 2. Essentially, as a part of the experiment, a majority of users are either not paying anything or paying Re 1,” a PhonePe spokesperson told PTI. Also Read - Over 600 illegal loan lending apps available on different App stores in India: RBI report
PhonePe also charges a processing fee for payments made through credit cards. Apart from these all other transactions on PhonePe and money transfers will continue to remain free of charge.
PhonePe currently has the highest market share in monthly Unified Payment Interface (UPI) as well as Bharat BillPay Services (BBPS) transactions. It currently processes 45 percent of UPI monthly volumes and 47 percent of the monthly value of transactions. According to recent data revealed by the National Payments Corporation of India (NPCI) on BBPS for August showcases that PhonePe currently holds a 49 percent volume share.
Apart from Digital Payments, the platform also offers customers insurance, gold purchasing, and mutual fund services.
The National Payments Corporation of India (NPCI) recently placed a cap on the market share for UPI. According to the rule, there can be no player which has a market share of above 30 percent. According to the Bernstein report, both PhonePe and Google Pay will have to dial down their customer incentives, to bring share towards the 30 percent cap.