UPI Transactions / UPI is free, then how did Google Pay and PhonePe earn ₹5,000 crores!

UPI Transactions: You make payments every day through apps like Google Pay, PhonePe, or Paytm, and that too for free! There is no transaction charge, no commission. Yet, these companies earned more than ₹5,065 crores last year. The question arises that when they neither sell any product, nor charge for transactions, then where does so much money come from? Let's uncover this secret and know that UPI is just a part of their business. The real earning path opens from somewhere else.

1. Earn crores from speakers

You must have heard that voice in shops, "Received ₹100 from PhonePe". These small voice speakers are a convenience for shopkeepers, but behind them is hidden the secret of these companies' huge earnings. Digital payment apps like PhonePe, Paytm rent these speakers to shopkeepers and charge around ₹100 every month. Today, from small tea shops to big ration stores, these speakers are seen on almost every counter.

Suppose, more than 50 lakh shops across the country use these speakers. Now do the math: ₹100 × 50 lakh = ₹50 crore every month. That means an annual income of ₹600 crore from just this one service! These speakers not only provide information about payment immediately, but also increase the presence of the brand and build trust among customers.

2. Scratch cards: User's greed, company's earnings

Sometimes a cashback of ₹10, sometimes a discount coupon—these scratch cards tempt every user. But in reality, they are less beneficial for the users and more beneficial for the brands. Brands pay huge amounts to these companies so that their offers and promotions reach crores of people through these scratch cards. The user gets a small reward, the company gets user engagement and advertising revenue from the brands. This is the second major source of income for these apps.

3. Loans and SaaS: Small business, big income

UPI is no longer just a payment tool, but has become a complete solution for small businesses. These apps now also provide services like GST filing, invoice management, and small business loans. That is, these are not just payment apps, but have become mini offices for small businesses. The special thing is that they do not have to work hard to add new customers. Those who use UPI also start trying their other products.

Apart from this, these companies charge platform fees for services like mobile recharge, electricity bill payment, and DTH. These small fees turn into a huge amount when combined with millions of transactions.