Sad News PhonePe starts charging for phone recharges above Rs 50

[Optimus_Prime]

Paytm going to listing in NSE and IPO is coming soon in Nov. So I don't think they will do any silly things before that. But definitely will follow the path of phonepe sooner or later

 

[iDJ]

Retailers makes profits by selling recharge. I bet these payments app does as well. I don't get the extra charge. Retailers will learn about same and start doing it themselves. Telecom operators should opted out of such extra charging apps. While pushing their own service.

 

[kanagadeepan]

I used to recharge for BSNL for my dad's number, through a retailer friend as BSNL changes plans, especially validity frequently and so not easy to keep track of their tariffs. He never charges extra for me. Then I will send money to him via GPay. This 50% online and 50% offline model will be good for everyone. Support your local retailer, instead of paying more money to big corporations (Rs1 charge is just the beginning).

@iDJ you are lucky to get VoLte in your VoId number. VoLte suddenly stopped working for my number some 4 weeks back (the time they said core integration gets completed). Many people in TN (both Idea like me and Voda users as well) are experiencing VoLte issues. Looks like VoId has not paid for the VoLte part of network team and they are killing VoId silently.

@Gobinaath bro.. I have earlier (many years back -- even before Payments bank introduction) used "Oxigen Recharges" services for recharge. They give 2.5% commission for prepaid recharges and 0.5% for postpaid bill payment. PayTM (wallet services) once used Oxigen services as back-end for recharges. So I guess these payTM, GPay may be getting something from operators, as operators are anyway saving the commission to be given to retailers. Yes, this is reg wallet services, not sure about UPI or payment bank services though...

 

[Sai Jai]

@Gobinaath bro.. I have earlier (many years back -- even before Payments bank introduction) used "Oxigen Recharges" services for recharge. They give 2.5% commission for prepaid recharges and 0.5% for postpaid bill payment. PayTM (wallet services) once used Oxigen services as back-end for recharges. So I guess these payTM, GPay may be getting something from operators, as operators are anyway saving the commission to be given to retailers. Yes, this is reg wallet services, not sure about UPI or payment bank services though...

If that so then why they discussing this 3rd party recharge issues in meeting ?? They acting or as a employees I'm fool ?? Something fishy

 

[kanagadeepan]

@Gobinaath bro. The problem is NOT with commission. But the cash-burn by giving cash back and offers is the real issue. Plus, the CC companies charge (slightly less than 2% = 1.5%+18%GST not sure) MDR for sure. For wallet services, that top-up using CC is itself a Loss.

BUT the biggest elephant in the room is "30% market share ceiling Limit (by volume) for UPI providers" set by RBI, to have enough competition in the sector. In UPI, PhonePe is undisputed number one player and GPay is number 2. PhonePe is having above 42.55% market share and GPay is with 36.11% during Feb2021. See HERE. PayTM with just 14.8% and AmazonPay with 1.9% can continue to give recharge with NO charges applicable. PayTM is NOT really customer focused for trolling PhonePe.

PhonePe can use this opportunity to make investors happy, by charging extra. People will stop doing recharges in PhonePe and will help them reduce the volume limitations as well as avoiding less profit business. It will NOT force people to STOP using PhonePe as there are many people who never use it for recharges. UPI to UPI will anyway be free. So no need to ditch PhonePe, but use retailer for the occasional ones (especially like my 50% online + 50% offline model).

 

[Abhi]

@Gobinaath bro. The problem is NOT with commission. But the cash-burn by giving cash back and offers is the real issue. Plus, the CC companies charge (slightly less than 2% = 1.5%+18%GST not sure) MDR for sure. For wallet services, that top-up using CC is itself a Loss.

BUT the biggest elephant in the room is "30% market share ceiling Limit (by volume) for UPI providers" set by RBI, to have enough competition in the sector. In UPI, PhonePe is undisputed number one player and GPay is number 2. PhonePe is having above 42.55% market share and GPay is with 36.11% during Feb2021. See HERE. PayTM with just 14.8% and AmazonPay with 1.9% can continue to give recharge with NO charges applicable. PayTM is NOT really customer focused for trolling PhonePe.

PhonePe can use this opportunity to make investors happy, by charging extra. People will stop doing recharges in PhonePe and will help them reduce the volume limitations as well as avoiding less profit business. It will NOT force people to STOP using PhonePe as there are many people who never use it for recharges. UPI to UPI will anyway be free. So no need to ditch PhonePe, but use retailer for the occasional ones (especially like my 50% online + 50% offline model).

Yes Right Credit Card Providers (Visa and Mastercard) Charge nearly 2 percent of Charges from the merchants and Amex Cards Charge upto 3.5 percent for the same. Thats why adding money to any wallets using credit card directly incur 2 percent charge in almost all wallets (including paytm, phonepe, mobikwik and airtel) all these are now started charging 2 percent on adding money using credit card, However no charges for any other payment mode..

 

[kanagadeepan]

Yes. But PayTM can't be blamed solely for that. At that time Many users mis-used the benefit of transfer to bank A/c facility for emergency cash requirements. Actually CC companies charge huge amount for cash withdrawal in ATMs. But by using add to wallet and send to bank a/c benefits (both free initially), many people escaped such charges.

Process is simple. First Top-up wallet using CC. Then transfer some amount to bank a/c. Then withdraw it from ATM. Customer gets amount from CC for zero charges. But here PayTM suffers MDR unnecessarily. So first they stopped FREE transfer to bank A/c. Then started charging for Top-up using CC.

 

[Sparker0i]

AmazonPay with 1.9% can continue to give recharge with NO charges applicable

Amazon Pay isn't a bank nor a Payments bank iirc... It should also be falling under the same 30% rule.

If we talk about Wallets, PhonePe also offers Wallets but still it has to fall under that rule, thus Amazon should also fall under that rule

 

[Deepu Darling]

Amazon pay