Paytm charging platform fees for mobile currency recharges and utility bills

Paytm-rival PhonePe was the first to charge fees on customers to use its platform for paying bills online

Paytm is one of the most popular digital wallet apps in India among both consumers and business merchants. Even the small kirana (mom-and-pop) stores, bakeries and mobile eatery stalls around the country now have a creative speaker gadget. The latter offers a voice announcement confirming the transaction completion so that owner can know and get reassured that the right amount has been credited to his/her account from the customers during rush hours.

Unlike the BookMyShow app, Paytm never used to charge any convenience charge on app users to complete any digital cash transaction.

It should be noted that in the past, whenever a rumour surfaced that some digital companies would soon levy convenience charges, Paytm used to allay the fears among consumers it won't bring any such fees for the digital money transaction service. However, it has gone back on its promise.

In 2019, to be precise on July 1, Paytm released a statement-- "Paytm neither charges nor will charge any convenience or transaction fee from customers on using any payment method which includes Cards, UPI and Wallet." --with a URL link to a blog webpage, which by the way, is defunct now.

Paytm is charging a platform fee between Rs 1 and Rs 6 on mobile currency recharges, and utility bills such as electricity, water, and gas on receipts billed Rs 100 and above value. What's more unusual is that the charge is being levied not on all Paytm users, but only on a few select individuals. There is a chance that all will be covered in the coming days.

Some have taken to Twitter to vent their anger on Paytm. Here are some of the tweets from disgruntled Paytm users:

DH reached out to Paytm for a formal response but declined to respond. But, Paytm Care has replied to the official Deccan Herald Twitter handle confirming that it has begun charging a nominal fee for its service.

"Paytm may charge a very nominal fee for some Mobile Recharges done on Paytm App or Website. This charge is applicable for all Payment methods and is displayed on the payment page before you proceed with the Recharge," reads the Paytm statement

In October 2021, PhonePe started charging fees for using the app to pay for online bills.

Get the latest news on new launches, gadget reviews, apps, cybersecurity, and more on personal technology only on DH Tech.