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PayTM And PhonePe Have Started Levying Platform Fees - Is This Really Scary?

The Indian mobile payment market was once dominated by players such as MobiKwik and FreeCharge, but in the last few years, Paytm and PhonePe have come to dominate the space.

What is PayTM and PhonePe?

PayTM and PhonePe are two of the most popular digital payment platforms in India. Both platforms allow users to send and receive money, pay bills, and make online purchases. Recently, both platforms have started charging a platform fee for transactions.

This has caused some concern among users, as it is not clear why the platforms are suddenly charging a fee. Some believe that the platforms are simply trying to make more money, while others believe that the fees may be necessary to cover costs associated with increasing transaction volumes.

 either way, it is important to understand what the fees are and how they will impact users. Here is everything you need to know about PayTM and PhonePe platform fees.

What are the fees?

PayTM is currently charging a 2% platform fee on all transactions. This means that if you send or receive Rs. 100, you will be charged Rs. 2 as a platform fee. Similarly, if you make a purchase of Rs. 100, you will be charged Rs. 2 as a platform fee. PhonePe is also charging a 2% platform fee on all transactions.

What do the fees go towards?

The platforms have not been very clear about where the fees go

Who pays for the fee and why?

The new platform fees that PayTM and PhonePe have started charging are scary for a number of reasons. For one, it's not clear who is paying for the fee. Is it the customer? The merchant? Or is it being split between the two? If it's the customer, then this could lead to higher prices for goods and services. If it's the merchant, then this could lead to them passing on the cost to the customer in the form of higher prices. Either way, it's not good news for consumers.

Another reason why these fees are scary is because it's not clear what they're being used for. Are they being used to cover the costs of running the platforms? Or are they being used to generate profit for the companies? If it's the latter, then this could lead to further price hikes down the line.

Either way, these new platform fees are something to be worried about. We'll have to wait and see how they play out in the real world before we know for sure whether they're going to be a good or bad thing.

Is it correct to say this is a ploy to make mobile companies increase their cost?

The recent decision by PayTM and PhonePe to start levying platform fees has led to a lot of debate. Some people feel that this is a way for the companies to make more money, while others believe that it is a necessary move to ensure the sustainability of the businesses.

Personally, I think that there is some truth to both arguments. It is no secret that mobile companies are always looking for ways to increase their profits, and this could be seen as one way to do that. However, I also believe that these companies have a responsibility to their users and need to find ways to keep their services running smoothly.

In the end, only time will tell if this decision was the right one. Only time will tell if PayTM and PhonePe will be able to continue providing their services without increasing costs for their users.

Will this be the norm for startups dealing in ecommerce?

The recent news that PayTM and PhonePe have started levying platform fees has left many people wondering if this will become the norm for startups dealing in ecommerce. While it is still too early to say for sure, there are some reasons to believe that this could become a common practice.

One of the biggest reasons is simply the fact that these companies are now more established and have a larger user base. With more users comes more transactions, and with more transactions comes more revenue. The ability to levy a small fee on each transaction can quickly add up to a significant amount of money.

Another reason is that other companies are likely to follow suit if they see that PayTM and PhonePe are successful in doing so. If these two companies are able to generate significant revenue from their platform fees, it will only be natural for other startups to want to get in on the action. After all, why let them have all the fun?

Of course, it remains to be seen how well this tactic will work in the long run. There is always the risk that customers will balk at paying even a small fee on each transaction. If enough people decide to take their business elsewhere, it could put a dent in these companies

In what ways will this affect users of these platforms now?

The recent announcement by PayTM and PhonePe that they will start levying platform fees has caused quite a stir among users. While the actual amount of the fee is quite small, many are concerned about the implications this might have for the future. So, what does this mean for users of these platforms?

For starters, it's important to understand that both PayTM and PhonePe are digital wallets. This means that they store your money in an account that you can use to make payments online or offline. In order to do this, they charge a small fee (usually around 2-3%) on each transaction.

However, with the new platform fees, users will now be charged a separate fee for using these services. For example, if you're using PayTM to pay your electricity bill, you'll now be charged a platform fee on top of the transaction fee.

This could potentially increase the cost of using these platforms, especially for those who use them frequently. Additionally, it's possible that other wallet providers will follow suit and start charging similar fees. This could create an uneven playing field in the market and make it more difficult for users to compare prices across different platforms.

Ultimately, only time will

What other platforms exist that offer better deals?

In the past few years, we've seen the rise of mobile payments platforms like PayTM and PhonePe. These platforms have offered users a convenient way to pay for goods and services using their mobile phones. However, recent reports suggest that these platforms have started levying platform fees. Is this really scary

There are other mobile payments platforms that offer better deals than PayTM and PhonePe. Platforms like MobiKwik and Freecharge do not levy any platform fees. This means that users can enjoy the convenience of mobile payments without having to worry about extra charges.

So, if you're looking for a mobile payments platform that doesn't charge extra fees, be sure to check out MobiKwik or Freecharge.


In conclusion, the platform fees levied by PayTM and PhonePe are not really scary. Instead, they offer a number of benefits to users, including increased security and convenience. What's more, the fees are relatively low compared to other payment platforms. So if you're looking for a safe and easy way to pay for goods and services online, these two platforms are definitely worth considering.

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