ICICI Bank will start charging payment platforms like Google Pay and PhonePe for UPI transactions. Here’s how it may impact your online transactions.
New Fee Structure for Payment Aggregators
ICICI Bank has introduced a new fee structure for payment aggregators (PAs) processing Unified Payments Interface (UPI) transactions on merchant platforms. The change, effective from August 1, will impact platforms such as Google Pay, PhonePe, Mobikwik, and Razorpay.
New Fee Structure for Payment Aggregators
Payment aggregators act as intermediaries between banks and merchants, handling the collection and settlement of payments. According to reports, ICICI Bank has informed PAs that those maintaining an escrow account with the bank will pay 2 basis points per transaction, capped at Rs. 6. For those without an escrow account at the bank, the fee will be 4 basis points, capped at Rs. 10 per transaction.
No charges will apply if UPI payments are directly settled into a merchant’s ICICI Bank account, allowing the bank to benefit from holding these funds temporarily. Industry executives believe the move aligns with recent regulatory discussions on monetising UPI infrastructure.
Private sector peers such as Yes Bank and Axis Bank already charge PAs for UPI payments. These three banks together handle a major share of UPI transactions for both payers and payees.
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New Delhi