Majority Of Consumers Disapprovingly Pay Convenience Fees On Online Platforms: Survey

Around 83 per cent of consumers disapprovingly pay convenience fees online platforms for booking tickets or any other service, online survey firm LocalCircles said on Tuesday.

According to the survey, 84 per cent of respondents want the government and its public sector units (PSUs) like IRCTC to stop charging convenience fees or service charges and promote Digital India.

LocalCircles claims to have received over 32,000 responses from consumers in 319 districts of India in response to the survey conducted between June 16 and October 19, while the number of feedback to each question varied.

"On an aggregate basis, 79 per cent of consumers surveyed claim they are being charged convenience fees for services they have booked online," the survey said.

According to the report on convenience fees, when services like tickets are procured digitally, the supplier or seller is able to lower the cost of manpower and facilities and instead spend more on the deployment of user interfaces and backend servers.

"However, despite the net cost savings, most platforms, whether selling movie or sports tickets, railway tickets or airline seats are levying this convenience, internet handling or service fee, which is beyond comprehension for most consumers," the report said.

According to the survey, some consumers also cited the example of UPI payments where no charges are being levied.

Consumers want similar practices to be adopted by other central government bodies, PSUs and state government units.

The survey found that 10 per cent of consumers "happily pay" convenience fees as they don't have to stand in a queue, 5 per cent prefer to stand in a queue, but 83 per cent "pay disapprovingly" and 2 per cent gave no clear response.

"The survey finds that 79 per cent of the consumers who buy services or tickets online are fed up with excessive convenience fees being levied by platforms. They feel that this excessive fee is coming in the way of Digital India. Consumers have reported this fee being as high as 20 per cent of the transaction value in some cases," the report said.