Paytm starts charging some users extra for mobile recharges

Paytm has reportedly started charging some of its users a small fee for mobile recharges made through the financial platform. This charge can be anywhere between Re 1 and Rs 6, depending on the importance of the recharge amount. Charges are taken from mobile top-ups paid via UPI or a credit/debit bank card.

The fee, at the time of writing this story, does not apply to all users, but like most changes rolling out gradually, we could see it coming to more Paytm users over the next few days. A report of Gadgets360 suggests that users started spotting the additional fees in early March when they noticed the platform was charging users a small convenience fee on transactions of Rs 100 and above.

In 2019, Paytm promised users that it would not charge any convenience or transaction fees to its users, regardless of payment method. However, it seems that Paytm’s strategies are changing in an effort to generate more revenue.

Paytm rival PhonePe also started charging users a ‘processing fee’ on mobile recharges over Rs 50 in October last year. What the company called a “small-scale experiment,” however, turned out to affect hundreds of users who took to social media to report the additional charges.

Neither platform has yet revealed how it is determined whether or not a user has to pay additional convenience or processing fees.

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Meanwhile, customers looking to dodge the extra fees are shifting top-up tasks to other payment platforms like Google Pay and Amazon Pay, which don’t yet charge users extra fees. India’s major telecom players Airtel, Jio and Vodafone Idea also have their own apps available for Android and iOS that allow in-app recharge via UPI and other payment methods.

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