Movement against Convenience Fee needed
Other than Localcircles no media seems to be bothered about public good it seems sometimes. Even the aviation minister of the country when asked about high fares says I am facilitator for industry and not a regulator. What he heck 😢😢
Take this issue of convenience fee. Our circle survey 4 months back literally shows pain we feel and how this is against digital India.
https://www.localcircles.com/a/press/page/convenience-fee-digital-payments
Yet
Paytm’s convenience fee on mobile recharges - ₹1-6
BookMyShow’s convenience fee on movie tickets - ₹15-30
Vistara’s convenience fee on air tickets - ₹300-700
Today, everything ranging from booking flight tickets to paying utility bills online comes with convenience fees — it could go up to ₹300-400 on flight tickets or ₹1-6 on mobile recharges.
Even a public sector undertaking such as IRCTC charges a convenience fee for ticket booking — something it has in the past come under fire for. In fact, in 2020-21, IRCTC generated ₹299 crore from convenience fees alone!
Well, while these charges are usually levied to cover technological costs — if left unregulated, they could easily dissuade consumers from going cashless.
In fact, 3 in 4 consumers believe that excessive convenience fees are coming in the way of making digital payments. As our nationwide survey, 77% of consumers say that they’re charged convenience fees for the majority of their online transactions. And 75% of consumers pay this fees disapprovingly.
Plus, the pervasiveness of convenience fees is increasing - earlier this year, Paytm began charging users a convenience fee for mobile recharges above ₹100, despite tweeting in 2019 that they wouldn’t resort to it, while PhonePe has been charging a fee since last October.
On the whole, the surveys suggest that excessive convenience fees are seriously impeding the country’s transition to a cashless economy - the convenience of making digital payments is coming at a cost that consumers may not always be willing to pay.
What are your thoughts on this? Should this subject be taken up again?? more
Take this issue of convenience fee. Our circle survey 4 months back literally shows pain we feel and how this is against digital India.
https://www.localcircles.com/a/press/page/convenience-fee-digital-payments
Yet
Paytm’s convenience fee on mobile recharges - ₹1-6
BookMyShow’s convenience fee on movie tickets - ₹15-30
Vistara’s convenience fee on air tickets - ₹300-700
Today, everything ranging from booking flight tickets to paying utility bills online comes with convenience fees — it could go up to ₹300-400 on flight tickets or ₹1-6 on mobile recharges.
Even a public sector undertaking such as IRCTC charges a convenience fee for ticket booking — something it has in the past come under fire for. In fact, in 2020-21, IRCTC generated ₹299 crore from convenience fees alone!
Well, while these charges are usually levied to cover technological costs — if left unregulated, they could easily dissuade consumers from going cashless.
In fact, 3 in 4 consumers believe that excessive convenience fees are coming in the way of making digital payments. As our nationwide survey, 77% of consumers say that they’re charged convenience fees for the majority of their online transactions. And 75% of consumers pay this fees disapprovingly.
Plus, the pervasiveness of convenience fees is increasing - earlier this year, Paytm began charging users a convenience fee for mobile recharges above ₹100, despite tweeting in 2019 that they wouldn’t resort to it, while PhonePe has been charging a fee since last October.
On the whole, the surveys suggest that excessive convenience fees are seriously impeding the country’s transition to a cashless economy - the convenience of making digital payments is coming at a cost that consumers may not always be willing to pay.
What are your thoughts on this? Should this subject be taken up again?? more
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I fully agree with your sentiments. One day, not too far away, when airlines will start charging for water and wheel chairs. This is how the airline makes money. more
Jan 16
If You want Services at your door steps then you have to pay the money. The Convenience fee differ from service provider to provider & as per application . It is Business model requires peoples & set up , establishment cost etc. Here few Peoples are shouting for Petrol / diesel Price hike but the sales of cars SUVs are zooming. No body takes cheaper Car. Is it hypocrisy or mentality ? more
Jan 13
As a matter of fact, online booking/payments reduce cost for the service providers as they reduce manpower & establishment costs incurred in offline counter transactions which more than balance out capital cost of technology upgradation. more
Jan 12
looting the consumer we need to be careful.On one hand our govt talks of digitising etc and on the other hand together with taxes we need to pay these convenience fees which was not there earlier .This talk of digitising is killing the common man as usual. more
Jan 12
