Paytm has begun charging users a convenience fee on mobile recharges. We have verified this, despite the fact that the company has not publicly acknowledged it. Paytm charges users fees ranging from ₹1 to ₹6, depending on the value of the recharge. For recharges of ₹100 or more, the company charges the fee regardless of the payment method.
The convenience fee first appeared in early March for a small number of users, although it is not applicable to everyone. This isn’t the first time Paytm has tried something similar; in 2019, the company attempted to do so and was faced with criticism. Given the negative reaction the first time, the company may reconsider its decision.
Paytm Convenience Fee For Recharges
Paytm is the second company to impose a fee for mobile recharges. PhonePe said last year that it would begin charging a “processing fee” on mobile prepaid recharges of ₹50 or more. Until now, the convenience fee was applied when transferring funds to a wallet from a credit card. This fee is known as MDR, or Merchant Discount, and it is usually set at 2 percent.
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If the convenience fee model is expanded to additional accounts, customers will be compelled to hunt for alternatives such as Google Pay, Amazon Pay, Freecharge, MobiKwik, and others that have not yet adopted it. Additionally, every bank provides mobile recharge services through its app, which consumers can use.