Free UPI Payment: How do companies like GPay and PhonePe earn crores with no charges on UPI payments? Details here

Companies like GooglePay, PayTm, PayPal and other apps earn from the voice-operated speaker service used in grocery stores.

Written by: Victor Dasgupta Edited by: Victor Dasgupta

Published: August 13, 2025, 8:53 AM IST

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https://www.india.com/business/google-pay-phonepe-paytm-amazon-pay-bharatpe-mobikwik-freecharge-bhim-upi-payments-grocery-shops-voice-apps-8007898/ Copy

UPI apps

How Google Pay and PhonePe Earn: Have you ever wondered how companies like Google Pay and PhonePe earn crores of rupees every year without charging any fees? Let’s find out their actual business model. In today’s time, people make payments ranging from Rs 1 to Rs 1 lakh through Google Pay or PhonePe. These payments are completely free — no charges and no commission.

Yet, last year, these companies earned over Rs 5,065 crore. Now the moot question is, from where exactly does this revenue come? The revenue of these digital giant apps comes from a unique business model that is based on trust, scale, and innovation.

Companies like GooglePay, PayTm, PayPal and other apps earn from the voice-operated speaker service used in grocery stores. Whenever you make a payment after purchasing goods from the shop, you hear a voice saying, ” Rs 100 received on PhonePe.”

According to the reports, these companies rent out these speakers to shopkeepers at Rs 100 per month. It is important to note that over 3 million shops have these speakers which generate an income of Rs 30 crore every month and Rs 360 crore annually.

Apart from this, companies like GooglePay, PayTm, PayPal and other apps are also earning through scratch cards. These cards entice customers with cashback or coupons. This is not merely a way to attract customers.