Get All Access for $5/mo

NPCI Directs Payment Apps Not To Charge Platform Fee On BBPS The reports said that government is likely to treat the unified payments interface (UPI) as public good in which customers do not required paying

By Teena Jose

Opinions expressed by Entrepreneur contributors are their own.

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

UPI Twitter handle

The national payments corporation of India (NPCI), reportedly, has directed the payment apps to stop charging platform fees for the Bharat bill payment system (BBPS) payments. This directive comes in line after a discussion paper related to such payment charges was released by Reserve Bank of India. The reports said that government is likely to treat the unified payments interface (UPI) as public good in which customers do not required paying.

According to news reports, PhonePe, which has the largest share of UPI transactions in India, had also started taking payment charges on some of its recharges and other payments. Similarly, in July, Paytm also started charging INR 1 for various bill payments. It is on this ground, NPCI released the directive.

Paytm responded that it immediately stopped charging the fees on the BBPS platform. PhonePe also announced that it discontinued charging payment fees. Both the companies said that it was started as an experiment and as per PhonePe, the experiment's result was promising as 98 per cent of the consumers were ready to pay the fees, the reports added.

According to TOI report, the PhonePe responded on this through e-mail that, "We have been running experiments on charging platform fees across different categories for some time now. The result looks promising, and reflects the fact that a very large majority of Indian consumers (98 per cent) are willing to pay a nominal fee for the convenience offered by PhonePe. For now, we have temporarily paused our platform fees experiments on all eligible BBPS categories. We will share our experimental findings with NPCI or BBPS, and then seek their support in standardizing nominal platform fees."

As per market reports, in July, the number of UPI transactions crossed the 6 billion mark. Under UPI, BBPS allows online payment of various services like bill payments which include electricity and water, and recharges.

Teena Jose

News Desk Reporter with Entrepreneur India

Teena is a post graduate in financial journalism. She has an avid interest in content creation, digital media and fashion.
News and Trends

Top Companies Underperform on Fair Labour Standards for Gig Workers: Report

This year, Fairwork evaluated 11 platforms in India including Amazon Flex, bigbasket, BluSmart, Flipkart, Ola, Porter, Swiggy, Uber, Urban Company, Zepto and Zomato.

Branding

You Don't Need Thousands to Turn Your Business Idea Into Reality — Here's How I Did It on a College-Kid Budget

From creating the packaging designs online by myself to learning how to take professional product photos, I found ways to launch a company on a low budget. Here's how you can do it, too.

News and Trends

Kalaari Capital Leads USD 2.25 Mn Funding for AI-Driven Design Startup Figr

AI-powered design platform Figr accelerates UI/UX design with new funding, aiming to enhance product development, expand teams, and drive global growth through generative AI advancements.

Marketing

How a Single PowerPoint Raised $300 Million for This Founder

Brandtech Group CEO David Jones explains what led him to leave his executive comfort zone to build an AI-powered tech empire from scratch.

News and Trends

AI in India: Transforming Lives and Businesses for Good

While AI has its fair share of drawbacks, the emerging technology is largely used to transform lives and businesses for good