In the era of technology, we use the internet for almost everything. In every way, we have become dependent on our mobile phones and internet. From Shopping clothes, groceries, electronic gadgets to taking banking facilities,booking tickets, anything can be by just a touch on our devices. The meaning of technology has broadened since the last decade. 

We all use mobile applications like Paytm, Phonepe, Google pay and other such applications for making transactions. These apps have made transactions easy and quick to an extent that now they have been used to substitute payments through cash.


These companies work to transact money from one account to another on a tap by the user and by charging commission on such transactions, they make their profits. Applications like Phonepe charges around ₹1-₹2 as its commission for facilitating the transfer, while applications like Paytm charges ₹1-₹6 for the same. But commission charged by Gpay still remains zero. 

According to the statistics, profits made by Gpay have increased by 62%, while applications like Phonepe and Paytm are still in losses. 

Now the question arises: 

How does Gpay make profit ? 

Gpay doesn’t charge commission from its customers, but it still does charge transactions from the companies in which the transaction is made. 

Commission on bills: Every time we use google pay for making payments for our bills (water, electricity etc. ), instead of charging commission from the user, it charges commission from the company to which the transaction is made. 

Commission on mobile recharges: Whenever we use google pay for making payments for our mobile recharges, it charges commission from the telecom operator and thus, in an indirect way makes profit. 

GPay rewards: Ever got exciting rewards after making transactions using Gpay ?

We all must have gotten reimbursement like scratch cards, cashbacks etcNow the payment for such awards is not actually given by Gpay, but is given by Google Asia Pacific. Thus, it helps Gpay to make revenue. 

The main reason why Gpay doesn’t charge a transaction fee is that they want to attract more and more customers. In India, Google Pay is the single largest UPI payments player in India with a 60% market share. Such strategies are important to survive in the competitive environment where more and more such companies are planting their roots. 

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