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  1. Paytm vs PhonePe: What do they charge for wallet loading, utility bill payments, platform fee and more?

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Paytm vs PhonePe: What do they charge for wallet loading, utility bill payments, platform fee and more?

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6 min read | Updated on August 16, 2025, 12:57 IST

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SUMMARY

Paytm charges merchants a 1.99% interchange fee on online payments, while there is no fee on in-store payments. PhonePe charges an interchange fee of 1.1% on transactions above ₹2000 if your customers use prepaid wallets for payment. There are no charges on transactions below ₹2000.

PhonePe vs Paytm charges, UPI app fees comparison India

The Indian fintech market is expected to reach $2.1 trillion by 2030.

Digital payments continue to rise in India, making huge advancements in the finance space and changing the country’s financial landscape. The Indian fintech market is expected to reach $2.1 trillion by 2030, expanding at an estimated CAGR of 18% between 2023 and 2030. Popular digital wallets and mobile applications like PhonePe and Paytm offer users the convenience of making various online transactions.

Paytm and PhonePe both charge a fee for different services they offer. While some services remain free, like UPI transactions, which don’t have any MDR (merchant discount rate) as per NPCI guidelines, customers and merchants do have to pay for certain services.

Let’s look at the charges applicable to PhonePe and Paytm users for various services:

Before we see these charges in detail, here is a snapshot of the charges:

CategoryPhonePePaytm
Bank-to-Bank UPI (P2P/P2M)No charges for usersNo charges for users
Wallet → Merchant via UPINo charges for customers; merchants pay 1.1% interchange fee if transaction >₹2000, no fee if ≤₹2000No charges for customers; merchants pay 1.99% interchange fee for online payments, 0% for in-store payments
Wallet Loading Fees (Credit Card)1.5%–3% + GST2–3% (exc. GST) depending on card type (credit, corporate, prepaid)
Wallet Loading Fees (Debit Card)0.5%–2% + GSTNot specified
Wallet Loading Fees (Net Banking)Not specified1.5% (exc. GST)
Wallet Loading Fees (UPI)FreeFree
Wallet Maintenance ChargesNoneFrom Jan 1, 2023: Full KYC – ₹15/qtr (exc. GST), Non/Partial KYC – ₹5/qtr (exc. GST); waiver possible via transaction/load/closure within 30 days
Platform/Bill Payment FeesNo platform fees for UPI bank transfers; convenience fee for certain utility bill payments via debit/credit cards, amount varies₹4–₹30 platform fee for recharges and bill payments
Merchant Discount Rates (MDR)Zero processing, setup, and hidden fees for merchants using PhonePe Payment GatewayNo fee for UPI/RuPay debit card; 1.99% for credit card/net banking; 0.4% (>₹2000) or 0.9% (<₹2000) for Mastercard/Visa debit card; 2.9% for international payment gateway
Subscription Fees (SME UPI)Free subscription for all merchants₹5–₹65 annually

PhonePe and Paytm charges comparison

Bank-to-Bank UPI (Person to Person/Person to Merchant): No charges are applied by PhonePe and Paytm, making transactions free for users.
Wallet (Prepaid Payment Instrument) to merchant via UPI: No charges are applied for customers, but the merchant has to pay a certain amount for every transaction made.
Interchange fee: Paytm charges merchants a 1.99% interchange fee on online payments, while there is no fee on in-store payments. PhonePe charges an interchange fee of 1.1% on transactions above ₹2000 if your customers use prepaid wallets for payment. There are no charges on transactions below ₹2000.

Wallet charges

Paytm

Paytm charges users between 2 and 3% (exclusive of GST) depending on wallet loading done via credit card, corporate card, or pre-paid card.

A surcharge of 1.5% (exclusive of GST) is applied on wallet loading done via net banking, and no extra fees are applied if done via UPI.

Paytm also levies wallet maintenance charges (since January 1, 2023). Full KYC users are charged a fee of ₹15 per quarter (excl. GST), while all other users are charged ₹5 per quarter (excl. GST).

Users can avoid paying this amount by either adding money to their wallet or by making a transaction using their wallet within 30 days of charges being levied. Alternatively, they are also allowed to close their wallet account within 30 days of charges being levied to avoid these charges. These charges are refunded or provided as cashback to users.

PhonePe

PhonePe charges users wallet loading fees based on the payment mode. A convenience fee is charged for credit-card-based loading of PhonePe Wallet, ranging from 1.5%-3% (plus GST), and for debit cards, the fee ranges between 0.5% and 2% (plus GST).

No additional fees are applied for wallet loading via UPI. PhonePe does not charge a fee for creating an account or opening a PhonePe Wallet.

Platform fees

Paytm charges a platform fee for utilising Paytm’s recharge and bill payment services, ranging between ₹4 and ₹30, based on the bill amount.

PhonePe does not charge any platform fee for UPI bank transfers, but charges a convenience fee for certain utility bill payments when using debit or credit cards. It depends on the specific service provider, and charges are displayed during the transaction flow.

Merchant Discount Rate

Both Paytm and PhonePe provide merchants with QR codes, POS (point of sale) machines and UPI to accept digital payments and to manage their transactions, creating an easy-to-pay experience for customers. When customers make a payment using an app’s QR code, the app charges a small commission on each transaction, also known as MDR (merchant discount rate).

Paytm doesn’t charge any fee from the merchants if the transaction is done via UPI or RuPay debit card. However, merchants are charged a fee of 1.99% if the transaction is done via credit card or net banking. For transactions done via Mastercard or Visa debit cards, a fee of 0.4% is charged for amounts more than ₹2,000, and 0.9% is charged for amounts less than ₹2,000. Further, Paytm’s international payment gateway charges are at 2.9% of the transaction amount.

Merchants using the PhonePe payment gateway pay zero fees in terms of processing, setup and hidden charges, as per PhonePe’s website. The charges, if any, are user and transaction-specific, which will be shown to users/merchants during the transaction flow.

Subscription fees

Paytm charges a UPI subscription fee from Small and Medium enterprises, ranging between ₹5 and ₹65 annually.

PhonePe offers a free subscription to every merchant, as its focus lies on free onboarding.

To conclude, remember to check the charges levied by these digital payment platforms as they’re often buried in the fine print. It’s important to take note of these charges to manage your finances and plan budgets effectively. Check and compare all digital payment platforms before choosing the right one for you or your business.

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About The Author

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Vani Dua is a journalism graduate from LSR College, Delhi. She is passionate about news and presently covers markets, business, economy, and other related fields. She is an avid reader and loves to spend her time weaving stories in her head.