A recent national survey by LocalCircles has revealed that a significant majority of Indian consumers are routinely paying convenience fees while making purchases or booking services online. The findings point to a growing dissatisfaction among users, with 78% of respondents stating they would prefer platforms that do not levy such charges.
Most consumers paying fees on essential platforms
According to the survey, which gathered over 40,000 responses from users across 321 districts, 62% of consumers reported being charged convenience fees for most of their online transactions. These charges were not limited to discretionary services. Respondents cited payments on platforms like Flipkart, Amazon, IRCTC, Paytm, Zomato, Swiggy, Zepto, Blinkit, BookMyShow, and even utility portals as common instances where additional fees were applied.
The practice appears widespread, cutting across both private and public service platforms. More than half (52%) of those surveyed confirmed that the fees were not occasional but applied to the majority of their online purchases.
Also read: 80% of Indian Shoppers Discover via Social Media
Rising discontent with hidden charges
The survey indicates that these fees are gradually eroding consumer trust. Nearly four out of five participants said they are more likely to shift to platforms that offer transparent pricing without layering in additional costs. With e-commerce and digital services now essential to daily life, the cumulative impact of these extra charges is becoming a major point of friction.
While platforms often justify these fees as covering payment processing or convenience costs, consumers increasingly see them as hidden costs that undermine affordability and fairness. The data highlights a potential opportunity for customer-centric businesses that offer zero or minimal convenience fees to differentiate themselves in a crowded marketplace.
With online transactions continuing to grow in volume and frequency, the debate around convenience fees is likely to intensify—especially as digital services aim to retain user loyalty in an increasingly competitive environment.
