Join our Waitlist for Expert Advice!

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.
Growing a Business

Here's How the Founder of PopUp Bagels Turned a Backyard Baking Project Into a Viral Sensation

PopUp Bagels founder Adam Goldberg propelled his business forward by leveraging smart operations and even smarter partnerships along the way.

News and Trends

Recur Club Announces Credit Offerings for Startups Beyond Series A and SMEs

In FY 24–25, the platform also plans to deploy an additional INR 2000 crores through its Recur Swift program for startups.

Growing a Business

This Miami Business Took a Bold Risk By Offering a New Type of Service — Here's How It Paid Off

Though it started as a fine-dining restaurant and art gallery concept, R House pivoted to offer something new – and it earned the establishment loyal fans.

Starting a Business

3 Steps You Can't Miss When Growing Your Business

There are many missteps you can take when growing your business, but there are also important steps you need to take. Don't miss one.

News and Trends

How Gen-Zs and e-Commerce are Transforming Consumer Behavior in India's Festive Shopping

India's festive shopping culture is not only alive but thriving in this new digital age, blending tradition with modern consumer preferences and setting new benchmarks for what's possible in the e-commerce landscape.

Leadership

Her Company Makes an Iconic 75-Year-Old Candy Popular for Halloween. Ignoring This 'Bad' Leadership Advice She Received Helps Drive Its Success.

Liz Dee, co-president of New Jersey-based candy company Smarties, shares some important lessons in leadership.