Walmart’s Group online payment application PhonePe has become the country’s first such app that has started charging for mobile recharges. Digital payment app PhonePe has started charging processing fees in the range of ₹1 to ₹2 per transaction for mobile charges done for above ₹50.
And, like other players, PhonePe is also charging processing fees for payments made through credit cards. However, other transactions on PhonePe and money transfers will continue to remain free of charge.
To clarify on bill payments, “we are not the only player or payment platform charging a fee. Charging a small fee on bill payments is now a standard industry practice and is done by other biller websites and payment platforms also. We charge a processing fee (called as convenience fee on other platforms) on payments with credit cards only,” the PhonePe spokesperson said.
More than 300 million registered users
PhonePe has the largest share in terms of UPI transactions in third-party apps. The company had recorded over 165 crores of UPI transactions on its platform in September, with the app segment accounting for more than 40%. 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.
In related news, PhonePe which had earlier approached the Bombay High Court seeking an injunction to restrain Resilient Innovations, which operates BharatPe, from misusing the company’s registered trademarks. PhonePe has withdrawn its petition against BharatPe’s Buy Now Pay Later (BNPL) Postpe platform which it had allegedly violated PhonePe’s trademark and said it will file a fresh suit in this regard.
