Paytm, a nationwide renowned payments app, is now charging a convenience fee from the users when they recharge with any prepaid plan from its platform. A convenience fee means that the total cost of the plan would increase. The company will be charging a convenience fee only with the prepaid plans that cost Rs 100 or more. Further, the recharges for which the users are paying through online methods such as UPI and debit or credit card would attract a convenience fee.
According to a Gadgets360 report, the convenience fee had started coming for select Paytm users in March 2022. But now, the platform seems to be charging it from more users. Let’s take a look at the details around the additional cost that the users will have to bear.
Paytm Will Charge Up to This Amount as Convenience Fee for Mobile Recharges
Paytm will charge users between Rs 1 to Rs 6 for mobile recharges through its platform. The amount would depend on the kind of recharge plan that the user is going for. It isn’t a very big amount but certainly something that might irk users because, in most of the other platforms, there’s no convenience fee on recharges.
Users can directly also recharge from the mobile apps or websites of the telcos instead of paying a convenience fee for every recharge they do using Paytm. The cost of prepaid plans has already gone up in India and is expected to go up further. Thus users would like to keep the cost of mobile services in check.
This could be a potential revenue earner for Paytm; however, it can also result in a blowback for the company. Paytm has been struggling in the stock market since listing and has already lost thousands of crores in market cap. The company is desperately trying to improve performance and reach a stable position.
